Australian shares fell on Wednesday, dragged down by losses in gold stocks due to weakness in bullion prices, while technology heavyweights tracked their US peers lower.

The S&P/ASX 200 index fell 0.5% to 7,344.80 by 2343 GMT, after closing almost flat in the previous session.

Gold stocks dropped 2.4% after bullion prices fell nearly 1% overnight on expectations for an early interest rate hike by the US Federal Reserve.

Evolution Mining and Northern Star Resources were the top two losers in the sub-index, shedding 4.9% and 3.3% respectively.

Tech stocks fell as much as 1.9%, tracking the Nasdaq's weaker finish overnight as a jump in US producer prices solidified expectations for sooner-than-expected interest rate hikes.

Sector major Afterpay dropped 2.4%, while Altium Ltd was trading 2% lower.

Energy stocks lost 0.3% after the International Energy Agency said the Omicron coronavirus variant was set to dent global demand recovery.

Financials rose 0.4% with the big four banks gaining between 0.7% and 0.1%.

In corporate news, retail conglomerate Wesfarmers said it would not support a buyout bid from grocer Woolworths for Australian Pharmaceutical Industries, in a bid to thwart Woolies' rival approach for the drugstore chain.

In New Zealand, the benchmark stock index fell 0.6% to 12,847.46 and was on track for a second straight session of losses.

The Reserve Bank of New Zealand will continue to raise the official cash rate and expects that it will eventually go above its neutral rate, Governor Adrian Orr said.