[BENGALURU] Australian shares fell to their lowest in more than five weeks on Wednesday, with tech stocks getting hammered the most as investors took cues from declines in the US blue-chip technology sector that sent the Nasdaq into correction territory.

The S&P/ASX 200 index fell 2.4 per cent to 5,866.1 by 0030 GMT, its lowest since Aug 3, after Tuesday's 1 per cent gain.

All three major US stock indexes closed in negative territory overnight as heavyweight tech firms like Apple, Microsoft Corp and Amazon Inc took a beating.

Australian technology stocks followed their US peers lower, losing nearly 4 per cent to hit their lowest since Aug 13.

Buy-now-pay-later firm Afterpay gave up 6.6 per cent, while software firm Xero lost 3.5 per cent.

Financials were the top drags on the benchmark index with a drop of up to 3 per cent. Major lenders Commonwealth Bank of Australia and Westpac Banking Corp shed up to 3.3 per cent each.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Energy stocks declined as much as 3.7 per cent, hitting their lowest since May 4, as oil prices fell sharply overnight.

Meanwhile, AstraZeneca said it had paused a late-stage trial of one of the leading covid-19 vaccine candidates after an unexplained illness in a study participant.

Australian biotech firm CSL had said earlier this week it would manufacture AstraZeneca's potential Covid-19 vaccine. CSL shares were down up to 3.1 per cent.

In New Zealand, the benchmark S&P/NZX 50 index dropped as much as 1.2 per cent to 11,752.780, its lowest since Aug 21.

Financials were the top losers on the index, with local shares of Westpac Banking Corp and Australia and New Zealand Banking Group shedding up to 1.9 per cent and 2.1 per cent, respectively.

REUTERS