* Inquiry into
* But material stocks firm on indication of strong
*
By Nicole Pinto
March 15 (Reuters) - Australian shares slipped on Thursdayas an inquiry into the country's scandal-ridden banking sectorhit financial stocks, while simmering global trade tensions amidworries of fresh
Open economies relying heavily on free trade would have muchto lose should
While a strength in material stocks helped put a floor underAustralian shares, the country's financial index fell upto 1 percent, with the 'Big Four' banks slipping by 0.8-1.1percent due to the inquiry.
"The Commission is focusing on their behaviour and some ofthe headlines appear to be affecting investor sentiment despitethe fact that most of these issues are already well-known," saidMichael McCarthy, chief market strategist at CMC Markets,referring to the judicial inquiry into the banking sector.
"The spotlight now appears to be affecting trading andthey're (banks) certainly underperforming," McCarthy added.
National Australia Bank Ltd stated at the inquirythat a system of bonuses and incentives had encouraged bankersto engage in fraudulent lending practices to boost theirincomes.
The bank's shares fell as much as 1 percent on Thursday,extending losses into a third session.
However,
Top miners BHP Billiton and Rio Tinto Ltdrose as much as 0.8 percent and 1.02 percent, respectively.
Among industrial stocks, logistics company Brambles Ltdrose as much as 2.3 percent, while Qantas Airways Ltdclimbed 2.5 percent to an almost four-month high.
Fletcher Building Ltd rose 3.2 percent while SparkNew Zealand Ltd fell around 4 percent to a one-week lowin intraday trade.(Reporting by Nicole Pinto, additional reporting by ChristinaMartin in Bengaluru; Editing by Himani Sarkar)