SYDNEY: Australian shares ended 1.5% lower on Wednesday, their worst session in more than a week, as investors refrained from making big bets after a lockdown was reimposed in the country's second-most populous state, slowing a broader national recovery.

The S&P/ASX 200 index was down 1.5% at 5,924.1 at the end of trade.

The financial sub-index lost 1.6%, with the "Big Four" banks dropping between 1% and 2.1%.

Energy stocks fell 1.5%, led by Viva Energy Group Ltd as oil prices dipped on data showing a build in US crude stockpiles, raising oversupply fears.

Healthcare stocks were also trading lower, with heavyweight CSL Ltd dropping 3.3%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index closed 0.3% lower, with Mainfreight Ltd being one of the biggest laggards after dropping 3%.