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By Aaditya GovindRao

Feb 20 (Reuters) - Australian shares plunged over 1% on Thursday, posting their fourth straight session of losses, as mixed corporate earnings reports from heavyweights across sectors guided investor sentiment, while banks also dragged.

The S&P/ASX 200 index .AXJO declined 1.2% to 8,322.8 points. The benchmark has fallen 2.7% so far this week.

Financial stocks .AXFJ fell 2%, their sixth consecutive session of fall. The sub-index has dropped 5.3% since Tuesday, when the Reserve Bank of Australia cut interest rates for the first time since 2020.

"Financial stocks don't tend to perform well in an easing interest rate environment as net interest margins have peaked, which is where the banks make a vast majority of their profits," said Grady Wulff, an analyst with Bell Direct.

ANZ Group ANZ.AX, the country's No. 4 lender, retreated 3.1% after its asset impairments rose to a four-year high during the first quarter. Peers Westpac WBC.AX and National Australia Bank NAB.AX shed 3% and 3.3%, respectively.

Miners .AXMM dropped 1.3%. The world's biggest iron ore producer Rio Tinto RIO.AX lost 1.5% after reporting its smallest annual profit in five years that also missed analyst expectations.

Fortescue FMG.AX, the fourth biggest iron ore producer, tanked 6.2% after its first-half profit missed expectations.

Coal miner Whitehaven Coal WHC.AX rose 8.9%, while lithium miner Pilbara Minerals PLS.AX jumped 6% after upbeat earnings reports.

Real estate stocks .AXRE fell 2.1% as property giant Goodman Group GMG.AX closed 5% lower after completing a A$4 billion ($2.55 billion) discounted fundraising.

The country's biggest non-food retailer Wesfarmers WES.AX gained 1.3% after its first-half earnings beat estimates.

Telstra TLS.AX, the country's No. 1 telecom firm, climbed 5.6% after the company met half-year profit expectations and announced a share buyback.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 1.2% lower at 12,880.36 points.

Flag carrier Air New Zealand AIR.NZ rose 0.8% as it announced a share buyback of NZ$100 million ($57 million).

($1 = 1.5711 Australian dollars)

($1 = 1.7486 New Zealand dollars)

(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Mrigank Dhaniwala)

((Aaditya.govindrao@thomsonreuters.com))

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