MELBOURNE: Australian stocks ran out of puff to end 0.1 percent lower for a second straight day as the banks ended weaker and the miners gave up some of their gains after Chinese manufacturing growth fell to a seven-month low. Dealers said they expected the market to tread water until unrest in the Middle East died down and uncertainty cleared over Australian government policies such as a fresh proposal for a carbon tax and health care funding. "I don't think the government is helping with all this talk about new taxes," said Ian Parker, a director at broker Hartleys. "When governments change their mind on taxes, that's not positive for a stock market. It just creates uncertainty for investors. If you're a worldwide investor you go where there's political certainty," he said. The benchmark S&P/ASX 200 index lost 5.3 points to close at 4,826.4. New Zealand's benchmark NZX 50 index rose 0.4 percent to 3,384.4. Dealers were surprised the market was not able to hold its gains on Tuesday, after the Reserve Bank of Australia's decision to hold rates steady, as expected, and retail spending showed the strongest growth in six months in January. "The economic fundamentals of the Australian economy are very strong. Our market should go higher," Parker said. Top miner BHP Billiton and Rio Tinto both rose around 0.5 percent. They came off their highs after data showed Chinese manufacturing grew at its slowest pace in at least half a year in February. Westpac Banking Corp led the banks lower, falling 1.1 percent, while top home lender Commonwealth Bank of Australia slipped 0.1 percent. Debt-laden Centro Properties jumped 20 percent then fell 13 percent to close at A$0.13 after agreeing to sell its U.S. malls to private equity firm Blackstone Group for $9.4 billion. "There is still uncertainty for Centro shareholders that's going to be affecting the volatility of the share price," said a fund manager who declined to be identified. Equinox Minerals fell 6.4 percent to A$5.84 after announcing a C$4.8 billion ($5 billion) hostile bid for fellow copper miner Lundin Mining . Equinox's Toronto-listed shares fell 8 percent CuDeco jumped 7.7 percent to A$3.49 after announcing a deal with Chinese state-owned Sinosteel to supply the processing plant for its Rocklands copper project in Queensland. Pathology test providers fell as the federal government entered talks that are likely to result in funding cuts for pathology tests. Primary Healthcare fell 4.9 percent to A$3.08, while Sonic Healthcare fell 2.9 percent to A$10.95.

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