SYDNEY/WELLINGTON, March 11 (Reuters) - Australian stocks struggled to gain traction on Friday due largely to lacklustre performance by the big banks and miners, while New Zealand consolidated after scaling an all-time high on Thursday.
Investors turned wary following a volatile session in global markets overnight as the European Central Bank muddled its easing message by suggesting it was running out of room to cut interest rates.
The S&P/ASX 200 index (xjo) edged up 0.1 percent, or 6.9 points, to 5,157.00 by 0316 GMT, on track to end higher for a second week. It was up 1.4 percent so far this week, extending last week's 4.3 percent rally.
The big banks were modestly higher, though Australia and New Zealand Banking Group (ANZ) underperformed with a 0.6 percent dip. Investors also sold the global miners, knocking 1.6 percent off shares in BHP Billiton (BHP).
Also under pressure as well were several stocks earmarked to be removed from the benchmark S&P/ASX 200 index by the index compiler following a quarterly review.
Among those stocks, Cabcharge Australia (CAB) shed 5.7 percent, while law firm Slater & Gordon (SGH) dropped 4.9 percent.
New Zealand's benchmark S&P/NZX 50 index (nz50) was barely changed at 6,508.06, holding just under a record high of 6,513.62 set on Thursday after a surprise interest rate cut by the Reserve Bank of New Zealand.
"We had a bit of a knee-jerk reaction on the upside in response to both the interest rates cut and the significant drop in the New Zealand dollar. However, that seems to have been pretty short-lived and we've gone back to reality," said Grant Williamson, investment advisor at Hamilton Hindin Greene.
However the benchmark was set for a weekly gain of 1.4 percent.
The Warehouse Group (WHS) rose 1.4 percent after the consumer goods retailer posted half year net profit growth of 32.2 percent.
ANZ (ANZ) led losses, falling 2.1 percent while Mighty River Power (MRP) lost 0.2 percent.
Air New Zealand (AIR) fell 2.1 percent and Fisher and Paykel Healthcare (FPH) lost 0.4 percent.
