Australia: Shares fall as subdued copper prices weigh on metal stocks

[BENGALURU] Australia shares fell on Wednesday, weighed down by heavyweight banks and mining stocks as copper prices dropped, although gains in energy, tech and gold stocks capped losses.

The S&P/ASX 200 index fell 0.23 per cent to 7,256.8 by 0023 GMT, after ending 0.4 per cent higher in the previous session.

Copper prices extended their decline to a one-month low on Tuesday on renewed fears that troubles at debt-laden developer China Evergrande Group could seep into the global economy.

Australian mining stocks fell 0.4 per cent, led by a 2.3 per cent drop in Liontown Resources, followed by Coronado Global Resources losing 2.01 per cent.

Global miners BHP, Rio Tinto and Fortescue Metlas declined between 0.1 per cent and 0.6 per cent.

Financial stocks shed nearly 1 per cent to hit a more than seven-week low, with the "Big Four" banks declining between 0.5 per cent and 1.1 per cent.

QBE Insurance Group and NIB Holdings were the worst performers on the financials sub-index, losing 2.3 per cent and 2.2 per cent, respectively.

Westpac fell for a fourth straight session, losing as much as 1.2 per cent, after it scrapped the sale of its Pacific businesses to Kina Securities, and said it expected to write back a loss of about A$121 million (S$118.7 million) it had recognised with its first-half results.

In contrast, energy stocks rose 1 per cent, led by Washington H Soul Pattinson and Company adding 2.9 per cent, followed by Worley gaining 2.7 per cent on a modest rise in oil prices overnight.

Tech stocks rose 0.3 per cent, led by Xero up 1.5 per cent, followed by Megaport gaining 0.6 per cent.

Wall Street closed near flat overnight ahead of the US Federal Reserve meeting, where the central bank could set out a timeline to taper its stimulus.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.1 per cent to 13,163.

Japan's Nikkei was down 0.46 per cent, and S&P 500 E-minis futures were down 0.35 per cent.

REUTERS