ASX 200 snaps two-day winning streak
Financials reverse gains made in last two sessions
Gold stocks log one-month closing high
Updates to close
By Sherin Sunny
May 22 (Reuters) - Australian shares ended lower on Thursday, dragged down by banks and consumer stocks, while weak domestic economic data and mounting global uncertainties kept risk appetite in check.
The S&P/ASX 200 index fell 0.5% to 8,348.70, retreating from the more than three-month peak touched on Wednesday.
Investors grew cautious after estimates showed U.S. President Donald Trump's proposed cuts could add $3.8 trillion to America's debt, while Australia's May composite Purchasing Manager's Index fell to 50.6 from 51 a month ago.
"The darkening local economic outlook, reinforced by today's three-month-low PMI reading, coupled with mounting instability in global capital markets, has effectively triggered a wave of profit-taking," said Hebe Chen, a market analyst at Vantage Markets.
Financials declined 0.8%, with three of the "Big Four" banks losing between 0.7% and 1.3%, while ANZ Group recovered earlier losses to finish flat.
The sub-index reversed the gains made in the last two sessions on the back of the Reserve Bank of Australia's (RBA) interest rate cut to a two-year low of 3.85%.
Real estate , consumer discretionary and technology stocks followed suit, falling 0.7%, 1.1% and 1.6%, respectively.
Miners lent some support, gaining 0.7%, as iron ore prices rose on steady Chinese demand.
Gold stocks jumped 3.3% to a one-month closing high as investors flocked to the safe-haven asset amid concerns over U.S. debt.
Genesis Minerals and Northern Star Resources advanced 5.8% and 5.4%, respectively, and were among the top gainers on the benchmark.
New Zealand's blue-chip S&P/NZX 50 index ended 0.3% at 12,662.25.
The country its new spending for the current fiscal year at a decade low, after warning of softer GDP growth and a "trade shock" to the economy from the global tariff war.
The Reserve Bank of New Zealand will announce its cash rate next Wednesday.
(Reporting by Sherin Sunny in Bengaluru; Editing by Sumana Nandy)
((Sherin.Sunny@thomsonreuters.com [Sherin.Sunny@thomsonreuters.com]))
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