ASX gains 0.1pct but banks lose ground

The local share market has edged slightly higher, as gains by retail companies following reports of higher household spending helped outweigh weakness from the big four banks on a report of higher costs.

The benchmark S&P/ASX200 index on Tuesday closed up 9.2 points, or 0.13 per cent, to 7209.8.

The broader All Ordinaries gained 19.1 points, or 0.26 per cent, to 7278.6.

The ASX's 11 official sectors were mixed, with three losing ground and seven gaining.

Financials fell 0.8 per cent after NAB warned full-year costs were expected to grow by three to four per cent.

Australia's second-biggest lender cited higher personnel and leave costs as well as a $60 million to $100 million top-up to payroll and customer remediation charges for existing matters.

NAB shares closed down 2.9 per cent to $29.81, its worst daily performance since June 14.

Among the other big banks, CBA fell 1.3 per cent to $101.28 ahead of its full-year earnings report on Wednesday, while Westpac retreated 0.8 per cent to $21.90 and ANZ dropped 0.9 per cent to $22.70.

But consumer discretionary shares added 1.4 per cent, heading higher after the Australian Bureau of Statistics reported that household spending rose 10.2 per cent in June compared to the same time last year.

Target and Bunnings owner Wesfarmers gained 1.8 per cent to $47.57, Platypus Shoes and Foot Locker owner Accent Group added 5.5 per cent to $1.44 and JB Hi-Fi gained 1.1 per cent to $44.26.

The heavyweight mining sector was up 0.1 per cent despite losses by the big three iron ore giants.

The sector was bolstered by lithium producers, who gained ground after the US Senate passed the Inflation Reduction Act, which contains $US370 billion in funding for green energy and to fight climate change.

Lake Resources was up 15.4 per cent to $1.24 and Liontown Resources jumped 5.3 per cent to $1.695.

Coronado Global Resources advanced 5.6 per cent to $1.60 after the coking coal producer announced that surging coal prices had helped it swing to a half-year net income of $561.9 million, from a $96.1 million net loss a year ago.

BHP retreated 0.8 per cent to $38.82, Rio Tinto dipped 0.2 per cent to $99.39 and Fortescue was down 0.1 per cent to $18.95.

Copper miner and potential BHP takeover target OZ Minerals retained Monday's 36 per cent rise and then some, rising 0.3 per cent to $25.66.

Megaport gained 10.0 cents to $9 after the Brisbane cloud computing company announced its full-year global revenue had risen 40 per cent to $109.7 million, compared to a year ago.

REA Group rose 6.7 per cent to a four-month high of $132.32 after the realestate.com.au owner announced full-year net profit after tax had risen 25 per cent to $408 million.

Chief financial officer Janelle Hopkins told analysts that while the Australian residential property market was moderating, it still had strong fundamentals with record low unemployment, high household savings and increasing migration, "which should continue to support demand".

Meanwhile, the Australian dollar was buying 69.71 US cents, down from 69.68 US cents on Tuesday.

ON THE ASX:

* The benchmark S&P/ASX200 index on Tuesday closed up 9.2 points, or 0.13 per cent, at 7029.8.

* The All Ordinaries gained 19.1 points, or 0.26 per cent, to 7278.6.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 69.71 US cents, from 69.36 US cents at Tuesday's close

* 94.05 Japanese yen, from 94.06 yen

* 68.29 Euro cents, from 68.22 cents

* 57.71 British pence, from 57.48 pence

* 110.07 NZ cents, from 111.14 cents.