Australian shares were stuck in neutral on Wednesday, with risk appetites taking a sharp hit after the IMF downgraded its global growth forecast a third time since October, rattling investors. The International Monetary Fund said the US-China trade war and a disorderly Brexit were key risks, noting that the global economy is slowing more than expected.
The downgrade came on the heels of flaring tensions between the United States and Europe, with President Donald Trump threatening to impose tariffs on $11 billion worth of EU products. The S&P/ASX 200 index, largely unmoved for a second session, inched up 0.03 percent or 1.7 points to 6,223.5 at the close.
Mining stocks ran out of steam as China's iron ore futures pulled back from a record high and some investors booked large profits following the sector's recent rally.
Benchmark heavyweight BHP Group slipped 0.4 percent and Fortescue Metals Group fell 0.2 percent. Blunting the losses among miners, gold stocks advanced as gold prices hovered near a two-week peak, with investors rushing to the safe-haven metal amid rising uncertainty. Top miner Newcrest Mining rose 1.5 percent, while Northern Star Resources and Saracen Mineral Holdings also climbed.
Financial stocks rose 0.3 percent, after four losing sessions, with biggest lender Commonwealth Bank of Australia firming 0.7 percent and fund manager IOOF Holdings up 1.9 percent.
New Zealand's benchmark S&P/NZX 50 index fell 0.81 percent or 79.34 points to finish the session at 9,707.96. Index heavyweight a2 Milk Company shed 0.7 percent.