Mining stocks led Australian shares lower on Wednesday ahead of the US Federal Reserve's rate decision, with investors on the lookout for any mention of the pace of hikes this year. Markets expect the Fed to raise rates for the second time in the year but caution prevails as investors await its language on the pace of further tightening.
The benchmark S&P/ASX 200 index was down 0.5 percent or 30.9 points, to 6,023.5. It added 0.2 percent on Tuesday. The index of mining stocks accounted for most of the main index's fall, extending losses to a third session on weakness in base metal prices. Heavyweight BHP Billiton was the benchmark's top drag, down 1.3 percent. Rival Rio Tinto lost 1.2 percent.
Australia's "Big Four" banks also sapped sentiment, shedding between 0.3 percent and 1 percent. Commonwealth Bank of Australia finished at its worst level since 2013. Gas pipeline company APA Group propped up the main board, rising nearly 21 percent to a record close following a $9.81 billion takeover offer from a consortium led by Hong Kong's CK Infrastructure Holdings.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index erased earlier losses to surge to its best close of all-time, up 18.5 points to 8,977.31. Healthcare stocks were the star performers. Fisher & Paykel Healthcare Corporation, up 1.6 percent, gained for a tenth straight session to scale a record close.
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