Australia's equity benchmark fell for a third straight session on Tuesday, with banks leading losses, as investors braced for a federal budget promising spending restraint and selective reform.
The S&P/ASX 200 closed 0.4% lower at 8,670.70, sliding 2.4% over the last three sessions. Australia is set to deliver a lower-than-projected budget deficit later in the day, buoyed by commodity windfalls, as it edges sensitive reforms forward without fanning inflation. Last week, the Reserve Bank of Australia was forced into a third rate hike this year as stubborn core inflation refused to ease.
