http://nz.biz.yahoo.com//090512/26/c9zj.html

(Updates BHP/Rio)

WELLINGTON, May 12 (Reuters) - Australian stocks extended early losses to be 1.5 percent lower on Tuesday, led by losses in banks and miners as investors booked profits after the market's recent rally.

Financial stocks followed the lead of their U.S. counterparts, which fell on concerns over dilution as several large banks announced share offerings.

The benchmark S&P/ASX 200 index .AXJO fell 59.6 points to 3,866.4 by 0240 GMT, after dipping 0.4 percent on Monday.

New Zealand shares .NZ50 were down 0.5 percent at 2,815.1.

STOCKS ON THE MOVE

* Mining giants Rio Tinto (ASX: RIO.ax) and BHP Billiton (ASX: BHP.ax) , both extend earlier losses as profit takers moved in after their strong run up in recent days. Rio down 1.6 percent to A$68.17 and BHP off 2.4 percent to A$34.45.

0240 GMT

* Shares in iron ore miner Fortescue Metals (ASX: FMG.ax) fell 8 percent to A$2.82. The company said it is not currently looking at a Shanghai stock listing [nSYU006505], denying recent media reports.

0112 GMT

* Bank shares fell as their U.S. counterparts dipped on profit-taking. Westpac Banking Corp (ASX: WBC.ax) was down 0.6 percent, National Australia Bank (ASX: NAB.ax) was 1.2 percent lower, Australia and New Zealand Banking Group (ASX: ANZ.ax) fell 1.7 percent and Commonwealth Bank of Australia (ASX: CBA.ax) lost 2 percent.

0105 GMT

* Australian wheat exporter AWB Ltd (ASX: AWB.ax) fell 5.5 percent to A$1.22 after it cut its half-year forecast due to a poor performance from its Brazilian arm. [nSYU006504]

2346 GMT