Australian shares erase hefty losses

Australian shares clawed back hefty early losses on Wednesday as growing expectations of a second 2015 rate cut generated support even as resources stocks followed key commodity prices lower. After falling more than 1 percent at the start of trading, the S&P/ASX 200 index partially recovered to close down 0.5 percent or 31.0 points at 5793.2. The index has fallen in five of the past seven sessions and lost more than 3 percent over the same period.
New Zealand's benchmark NZX 50 index fell 25.7 points or 0.5 percent to finish the session at 5862.0. Mining stocks accounted for most of the losses, with iron ore majors BHP Billiton and Fortescue Metals Group down 5 percent and Rio Tinto down 1 percent as the demand from steel-hungry China continues to slow. Among energy firms, Woodside Petroleum and Origin Energy each fell about 1 percent as the oil price weakened.