A five-day rally in Australian shares stalled on Thursday, with the index ending just one point below the 17-month closing high posted a day earlier as investors turned cautious over effect a strong Australian dollar was having on exporters. Top miner BHP Billiton still managed its best close in 7-1/2 months, gaining 0.7 percent to A$36, as iron ore prices rose to their highest since July.

The broader upside for stocks was stifled by the Australian dollar's advance to a three-month peak, along with concerns at the lack of progress in US budget talks between Democrats and Republicans over ways to reduce the deficit. The benchmark S&P/ASX 200 index shed 1 point, the first decline in five days, to end at 4,582.8, according to the latest data. The index hit an intraday high of 4,603.5 on Wednesday and closed at a 17-month high. New Zealand's benchmark NZX 50 index fell 0.5 percent to 3,974.7.

Copyright Reuters, 2012