Australian shares slipped 0.2 percent in thin trade on Monday as investors began winding down ahead of the end of year holiday season, though the resource sector found support from firm iron ore prices, which had helped the market to a 17-month high last week.

Banks, healthcare and other industrial shares posted modest declines, while mining stocks were held up by the rally in iron ore prices and an encouraging manufacturing survey from China on Friday. "There is a bit of money coming out of the high-yielding stocks like banks and coming into resources," said Jamie Elgar, dealer at Burrell & Co. Overall volumes were moderate, with total turnover just 83 percent of an average day.

Among the top miners, BHP Billiton rose 0.8 percent to A$36.35. The benchmark S&P/ASX 200 index declined 9.7 points to close at 4,573.4, not far from last week's 4,603 17-month peak. The benchmark ended flat on Friday. New Zealand's benchmark NZX 50 index fell 0.3 percent to 3,966.5.

Copyright Reuters, 2012