The S&P/ASX200 fell 2.7 points on Tuesday, down 0.03 per cent, to 8,867.4, as the broader All Ordinaries gained 8.8 points, or 0.1 per cent to 9,139.9.
Eight of 11 local sectors ended the session higher as strong miners, energy and IT stocks counterbalanced a 1.1 per cent slump in the financial sector, with insurers in the red and banks selling off.
Healthcare stocks also tumbled at the last minute after shares in blood plasma giant plummeted five per cent following CEO Paul McKenzie sudden retirement amid concerns about the company's growth prospects.
"We were off to a very good start following those positive leads from Wall Street but that's quickly turned to a flattish day, which was disappointing given the strength of the rally overnight," Moomoo market strategist Michael McCarthy told AAP.
Plenty of liquidity found its way into iron ore giants BHP and Rio Tinto, which each gained more than one per cent as iron ore futures reclaimed the $US100 a tonne level.
Goldminers were broadly higher despite a flattish session for the commodity, which is trading hands at $US5,025 ($A7,103) an ounce.
Evolution Mining traded flat before its earnings update on Wednesday, while Northern Starr and Newmont each gained more than 1.6 per cent.
Mixed miners, battery minerals producers and rare earths stocks were broadly higher, with Lynas up 2.2 per cent and Liontown surging more than three per cent to $1.75.
The energy sector lifted 0.6 per cent despite a underwhelming performance from fossil fuel producers as uranium stocks continued to rebound from the previous week's sell-off, which was linked to fears around artificial Intelligence returns and the global data centre build-out.
Enrichment technology Silex Systems was the top-200's best performer, up more than eight per cent to $7.24.
The IT sector has staged a similar recovery, up almost six per cent in two sessions but still on par with its value a year earlier.
But the main drag on Tuesday's performance was definitely the financial sector as investors unloaded insurers and bank stocks.
QBE, Suncorp and IAG lost between three and six per cent, respectively, after the Insurance Council confirmed an estimated $200 million in losses in Victoria alone due to fires, flash flooding and storms.
Westpac and ANZ were also heavy down more than 1.8 per cent each, while NAB traded flat and CommBank shares slipped 0.7 per cent to $158.74 before its earnings call on Wednesday morning.
Consumer discretionary stocks gained 0.9 per cent and staples edged higher as Westpac reported a dip in consumer confidence in February before the Reserve Bank interest rate hike.
In company news, Penfolds owner Treasury Wine Estates jumped 3.5 per cent after raising forward guidance and settling a long-running dispute with a US distributor.
The Australian dollar is trading near two-year highs, buying 70.71 US cents, up from 70.29 US cents on Monday at 5pm AEDT, buoyed by commodity prices and last week's interest rate increase.
ON THE ASX:
* The S&P/ASX200 fell 2.7 points, or 0.03 per cent, to 8,867.4
* The broader All Ordinaries rose 8.8 points, or 0.1 per cent, to 9,139.9
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 70.71 US cents, from 70.29 US cents at 5pm AEDT on Monday
* 109.84 Japanese yen, from 110.05 Japanese yen
* 59.40 euro cents, from 59.39 euro cents
* 51.71 British pence, from 51.63 British pence
* 117.13 NZ cents, from 116.78 NZ cents
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