Aussie stocks close weaker on Tuesday despite afternoon recovery

Australian stocks staged a slight recovery in late trade however the market was still soft as investors poured rotated yield strategies.

At the close on Tuesday, the S&P ASX/200 index was down 19.5 points, or 0.36 per cent at 5,326.2 points, while the broader All Ordinaries index was down 20.5 points, or 0.38 per cent at 5,399.8 points.

"It's just been a day of mild reversal," CMC Markets chief market analyst Ric Spooner told Xinhua, adding the market may have moved enough on the "Trump theme".

Investors took profits out of commodities and banks, however "interestingly" energy stocks were one of the few bright spots with oil prices supported on a lower U.S. dollar throughout the Asian session.

"(Investors) are getting out of things that have done well and rotating into the (underperforming) sectors," Spooner said.

At the close, Oil Search rallied 2.18 percent, Santos surged 4.71 percent and Woodside Petroleum was 0.45 percent stronger.

The Commonwealth Bank of Australia added 0.33 percent and the National Australia Bank edged 0.11 percent higher, Westpac was up 0.19 percent, however ANZ lost 0.47 percent.

BHP Billiton shed 1.17 percent, rival Rio Tinto fell 0.82 percent while gold miner Newcrest lifted 0.53 percent.

Wesfarmers slid 1.60 percent however rival Woolworths gained 0.47 percent.

Qantas bounced 2.26 percent however telecom giant Telstra was 1.46 percent weaker. Endit