* ASX 200 dips 0.1 percent on weak Wall Street lead
* 75 shares higher, 113 shares lower, 12 shares unchanged
* Jump in iron ore prices helps support the resource space (Adds analysis, quotes, stocks on the move)
By Thuy Ong and Gyles Beckford
SYDNEY/WELLINGTON, Sept 16 (Reuters) – Australian sharesslipped 0.1 percent on Tuesday, following a weaker lead fromWall Street that dampened local sentiment, though mining stocksclimbed after battered iron ore prices jumped overnight, paringfurther losses.
Spot iron ore posted its biggest one-day rise since Marchovernight as firmer spot steel prices in China spurred a reboundfrom recent 5-year lows, although the recovery is seen asfragile amid growing signs of weakness in the economy.
The resources sector accounted for most of the gains inearly trade, with global miners BHP Billiton Ltd andRio Tinto Ltd (Xetra: 855018 – news) adding 0.6 percent and 0.8 percent each.World no.4 iron ore miner Fortescue Metals Group Ltd jumped 2.5 percent.
The S&P/ASX 200 index slipped 3.8 points to 5,469.7by 0214 GMT. The benchmark suffered its biggest loss in fiveweeks on Monday, slumping 1 percent.
“As global bond markets show early signs of adjustment to anemerging higher interest rate environment, yield plays like themajor banks, Telstra and property trusts are losing favour,”Michael McCarthy, chief market strategist at CMC Markets, saidin a note to clients.
Higher yielding stocks drifted lower, with NationalAustralia Bank, Australia’s fourth largest by marketvalue, trading flat and Telstra Corporation Ltd,Australia’s biggest telecommunications provider, declining 0.3percent.
The healthcare sector also fell with Ramsay Healthcare Ltd dropping 3.2 percent, and Sonic Healthcare Ltd dipping 0.2 percent.
The benchmark index hit a six-year high of 5,679.5 on August21, but has since slumped some 180 points to trade at one-monthlows as a rout in iron ore prices and fears over a slowdown inChina, Australia’s largest export market.
Investors face a busy period, with the Scottish independencereferendum result and the Federal Reserve’s policy meeting laterin the week, traders said.
Elsewhere, Australia’s central bank has warned that recordlow levels of interest rates risked stoking an unwelcomeincrease in home prices and debt, another sign that a furthereasing in policy was unlikely.
UGL Ltd jumped 2.7 percent after saying it is amember of a consortium awarded a A$3.7 billion operationscontract with the New South Wales government to deliver theNorth West Rail Link.
New Zealand stocks were weaker with the benchmark NZX-50index down 0.26 percent to 5,197.08, as it retreatedfell to a three-week low after hitting a life time high lastweek.
Several of the top stocks were softer, including Sky TV down 2 percent to NZ$6.30, and a 1 percent dip for F&PHealthcare to NZ$5.18. State-controlled nationalcarrier Air New Zealand was down 2.7 percent atNZ$1.975.
However, accounting software developer Xero clawedback some of its recent losses, rebounding 2.6 percent toNZ$20.56. (Editing by Eric Meijer)
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