Australian shares on Wednesday tracked a sell-off on Wall Street overnight, with tech stocks leading the decline after the Nasdaq index dropped over 2%, while local miners slipped as copper and gold prices weakened.

Global miner BHP Group dropped up to 1.2% in early trade amid a general weakness in the mining sub-index and as the company warned of possible disruptions in Western Australia due to rising COVID-19 cases.

The S&P/ASX 200 index dropped 0.8% to 7,354 points by 2311 GMT. The benchmark had closed 0.1% lower in the previous session.

Equity markets tumbled on Tuesday as traders braced for the US Federal Reserve to tackle fast-rising inflation by tightening monetary policy.

Australian shares rise on mining, energy boost; Crown Resorts soars

Tech stocks dived nearly 3% to their lowest levels since May 24, with sector major Afterpay falling 0.5%.

Miners slipped 0.6%, with Fortescue Metals falling as much as 2.3%.

Australia's Lynas Rare Earths posted record second-quarter revenue on Wednesday. However, shares fell 0.9%.

Financials also dragged the benchmark lower with their 1.3% drop. Macquarie Group, one of country's top lenders, slid 2.5% to hit its lowest since Dec. 20.

Gold stocks slid nearly 1% as investors ditched the safe-haven bullion after the dollar and US Treasury yields strengthened. Evolution mining was down 1.3%.

Energy stocks bucked the overall negative trend to rise over 1% amid robust oil prices.

Sector heavyweights Santos and Woodside Petroleum gained 1.8% and 1%, respectively, ahead of their production figures scheduled to be released on Thursday.

Meanwhile, a measure of Australian consumer sentiment slipped in January as a surge in coronavirus cases soured the national mood, curbing spending and mobility in what is typically a holiday-heavy month.

In New Zealand, the benchmark S&P/NZX 50 index was down 0.8% at 12,705.82 points.

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