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By Aaditya GovindRao

Feb 19 (Reuters) - Australian stocks fell on Wednesday, as NAB led banks lower and Mineral Resources dragged down miners on weak earnings, while New Zealand shares gave up early gains after the central bank signalled further rate cuts would be smaller in size.

New Zealand's benchmark S&P/NZX 50 index .NZ50 closed down 0.1% at 13,033.36. Earlier in the day, the index gained as much as 0.5% after the Reserve Bank of New Zealand cut interest rates by 50 basis points as was expected in a Reuters poll.

However, the market reversed course after RBNZ Governor Adrian Orr said the board is forecasting a lower terminal rate than in its November projections and expects two more 25-basis point cuts in April and May.

Orr's comments appeared to have dashed hopes for 50-bp cuts and "caused the initial reactions to completely reverse," analysts at Westpac said in a note.

In Sydney, the S&P/ASX 200 index .AXJO fell 0.7% to 8,419.2, with heavyweight financials down .AXFJ 2%.

National Australia Bank $(NAB.AU)$ NAB.AX, the country's biggest business lender, fell 8.1% to post a two-month closing low after higher arrears and costs impacted first-quarter cash earnings.

Miners .AXMM fell 0.1%, dragged down by Mineral Resources (MinRes)MIN.AX after the company forecast lower production volumes and higher costs at its Onslow iron project in Western Australia.

The stock fell 20.7% in its worst session since October 2008 and was the top loser on the benchmark index.

Energy stocks .AXEJ lost 2.4% to close at their lowest in nearly two months. Oil and gas explorer Santos STO.AX slipped 4.5% after a 16% drop in annual profit.

Healthcare firms .AXHJ ended 0.8% higher, while gold stocks .AXGD jumped 1.5% as bullion prices hovered near record highs. GOL/

Among individual stocks, James Hardie Industries JHX.AX climbed 3.1% after the fibre cement maker beat estimates for third-quarter profit.

(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Subhranshu Sahu)

((Aaditya.govindrao@thomsonreuters.com))

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