Updates to close

By Rajasik Mukherjee

Feb 28 (Reuters) - Australian shares took a beating on Friday, with miners being the top losing index, and ended February with their steepest decline in nearly 2-1/2 years as they wind up a mixed season of corporate earnings.

The benchmark S&P/ASX 200 index .AXJO fell 1.2% to 8,172.4 at the close of trade. The index lost 4.2% for the month, logging its worst month since September 2022.

Investors navigated through a tumultuous month marked by the benchmark hitting a record high, the central bank cutting its rates, and a mixed bag of domestic corporate earnings.

"Market has been mixed as investors have been very reactive to the outlook for the second half provided during reporting season that has driven investor moves during February," said Grady Wulff, market analyst with Bell Direct.

Miners .AXMM fell 2.7%, hitting its lowest level since January 9, tracking falling iron ore prices. IRONORE/

The sub-index lost nearly 6% this week, its worst since November, and ended the month with an 2.9% drop.

BHP Group BHP.AX and smaller peer Rio Tinto RIO.AX each lost nearly 2.6%.

Financials .AXFJ also ended in the red, losing 0.3%, with the three of the "Big Four" lenders down while Commonwealth Bank of Australia CBA.AX traded flat. For the month, the index lost 5%.

Investors had been seeking safety in Australian banks over the past few months due to market uncertainty, but are now selling because "values of such stocks are not sustainable or valuable in a lower interest rate environment," Grady said.

Consumer stocks .AXSJ fell 2.2% on the day, with Coles Group COL.AX falling 2.2%, as it bore the brunt of investors booking in their profits after the grocer hit a record high in its previous session. However, the ended closed up 1.4% for the month.

Among company news, embattled casino operator Star Entertainment SGR.AX closed 11.5% lower, after it warned that it might not be able to file its half-year earnings.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.5% to 12601.42 points at the end of trade.

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Varun H K)

((Rajasik.Mukherjee@thomsonreuters.com))

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