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By Nichiket Sunil

Aug 29 (Reuters) - The Australian benchmark notched its best August performance in sixteen years on Friday as the corporate earnings season wrapped up, while losses in financial stocks dragged the shares slightly lower on the day.

The benchmark S&P/ASX 200 index .AXJO has risen nearly 2.6% this month, the most gains in August since 2009, as markets digested the Reserve Bank of Australia's rate cut alongside a barrage of corporate results.

Underperforming miners .AXMM soared more than 11% this month. Investors also favoured relatively stable sectors such as consumer staples .AXSJ, up 2.3%, and financials .AXFJ, up 3%, following stellar earnings from the likes of grocer Coles COL.AX and lender Westpac WBC.AX.

The two companies added nearly 16% and 15% this month, respectively.

On the day, the benchmark closed 0.1% lower to 8,973.1 points.

Heavyweight financials .AXFJ ended 0.6% lower on the day, with top lender Commonwealth Bank of Australia CBA.AX dropping 1.8%.

"Investors are concerned about fiscal 2026 margin compression as rates are expected to continue falling," said Justin Lin, an investment analyst at Global X ETFs.

Earlier this week, the Reserve Bank of Australia joined the U.S. Federal Reserve to tilt towards a dovish stance on their monetary policies. Lower rates would lower borrowing costs, which could potentially impact bottom lines of banks.

Limiting benchmark losses, technology stocks .AXIJ closed 3.1% higher after data centre landlord NEXTDC NXT.AX soared more than 17.4% on annual earnings beat.

Energy stocks .AXEJ rose 1%. Shares of uranium majors Boss BOE.AX and Paladin Energy PDN.AX advanced 7.7% and 7.8% respectively, after Canada's uranium producer Cameco Corp CCO.TO flagged a production downgrade for fiscal 2025.

Markets believe the downgrade will drive up uranium prices, allowing equities to react favourably to that decision, said Glyn Lawcock, head of mining research at Barrenjoey.

New Zealand's benchmark S&P/NZX 50 index .NZ50 closed up 0.2% at 12,930.73 points.

Reserve Bank of New Zealand Chair Neil Quigley tendered resignation from the board and as chair with immediate effect, the country' finance minister said.

(Reporting by Nichiket Sunil in Bengaluru; Editing by Janane Venkatraman)

((Nichiket.Sunil@thomsonreuters.com;))

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