Australian shares eased 0.2 percent on Tuesday amid...

Australian shares eased 0.2 percent on Tuesday amid profit-taking on banks and telecoms, even as the recent mood of extreme pessimism lightened a little globally and lifted resource stocks.

The S&P/ASX 200 index (xjo) fell 9.9 points to 4,991.3 by 0140 GM, with losses in index heavyweights Commonwealth Bank (CBA), Westpac (WBC) and Telstra (TLS).

BHP Billiton (BHP) slashed its interim dividend by 75 percent on Tuesday, cutting it for the first time since 1988 following a collapse in resource prices.

Yet its shares added 3 percent, aided by a hefty $3.30 jump in the price of iron ore to $50.30 a tonne, the highest since late October and a long way from December's trough of $37.

Competitor Rio Tinto (RIO) gained just over 1 percent on top of a steep jump in London trade.

Qantas Airways (QAN) reported first-half profit more than doubled to a record, though mainly thanks to sharply lower fuel costs.

The market had already priced in much of that improvement and was quick to take profits on the results, knocking the stock down 4 percent.

QBE Insurance Group (QBE) climbed 9 percent after reporting a rise in both profits and dividends.

The takeover war for Asciano (AIO) took a new twist as the competing bidders said they were considering a joint offer worth A$9 billion ($6.5 billion).

Australian bidder Qube Holdings (QUB) saw its stock rise 11.9 percent on the news.

New Zealand's benchmark S&P/NZX 50 index (nz50) rose 0.58 percent or 35.93 points to 6,175.390 on Tuesday, tracking gains in global markets.

Heartland Bank (HBL) led with a rise of 2.61 percent after announcing its half-year revenues.

Air New Zealand (AIR) rose 1.44 percent, while retailer The Warehouse Group (WHS) added 1.12 percent.

Freightways (FRE) fell 1.48 percent, losing more ground after a offering a cautious outlook in its half-year earnings results on Monday.

Mighty River Power (MRP) edged down 0.75 percent after its half-year operating earnings dipped amid intense market competition.