SYDNEY: Australian shares fell for a second session on Wednesday and closed at their lowest in over three weeks as declines in banks offset a rebound in mining and energy stocks.

The S&P/ASX 200 index shed 0.55 percent, or 28.11 points, to 5,080.50, extending Tuesday's 0.91 percent decline.

Most of the big four banks finished in the red but oil and gas producer Santos climbed 5.7 percent, trimming some of the hefty losses suffered in the past two sessions.

New Zealand's benchmark S&P/NZX 50 index bounced off a 2-1/2 week low to close at 6,053.55, up 0.31 percent, or 18.55 points, on the day.

Copyright Reuters, 2015