Australia shares fall as subdued copper prices weigh on metal stocks

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% to 7,256.8 by 0023 GMT, after ending 0.4% 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%, led by a 2.3% drop in Liontown Resources Ltd, followed by Coronado Global Resources Inc losing 2.01%. Global miners BHP, Rio Tinto and Fortescue Metlas declined between 0.1% and 0.6%.

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

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

Westpac fell for a fourth straight session, losing as much as 1.2%, 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 ($87.52 million) it had recognised with its first-half results.

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

Tech stocks rose 0.3%, led by Xero Ltd up 1.5%, followed by Megaport Ltd gaining 0.6%.

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% to 13,163. Japan's Nikkei was down 0.46%, and S&P 500 E-minis futures were down 0.35%.