News: Australia shares edge lower on Wall Street weakness

Australian shares fell on Monday, extending losses into a second session, as a weaker Wall Street weighed on market sentiment.

The S&P/ASX 200 index (xjo) fell 0.3 percent, or 18.2 points to 4,958 points by 0049 GMT. The benchmark fell 0.1 percent on Friday.

New Zealand's benchmark S&P/NZX 50 index (nz50) was closed on Monday for a public holiday.

Although edging lower, traders said the losses were less than expected, considering the weak end to trading in the United States.

"Though we a down there was an expectation we could be down quite substantially today.. .on the back of U.S. markets getting an absolute tailing on Friday night, Nasdaq absolutely plummeted," said Evan Lucas, market strategist, IG Markets.

Financials led the index down, with shares in ANZ Bank (ANZ) and National Australia Bank (NAB) falling more than 1 percent, while Commonwealth Bank of Australia (CBA) and Westpac Banking Corporation [WBCWB.UL] both fell more than 0.5 percent.

The worst-performing counter was money transfer service Ozforex (OFX), which fell nearly 40 percent to hit an all-time low after it said it had terminated takeover discussions with Western Union.

Meanwhile, shares in Asciano Ltd (AIO) rose more than 2 percent, to hit an all-time high of $9.14 a share as the bidding war for control of the Australian freight transport operator escalated.

Miners Rio Tinto Ltd (RIO) and BHP Billiton Ltd (BHP) shrugged off the broad weakness, rallying nearly 1 percent on an upturn in the iron ore market, which last week recorded its biggest seven-day gain since April.