SYDNEY/WELLINGTON: Australian shares surrendered early gains to close slightly lower on Tuesday as western sanctions against China dampened risk appetite, with energy and technology stocks leading the retreat.

The S&P/ASX 200 index settled 0.1% lower at 6,745.4, after gaining as much as 0.5% in earlier trading.

In Australia, energy stocks shed 1%, dragged down by a fall in oil prices as new pandemic curbs in Europe raised fuel demand recovery concerns.

Woodside Petroleum and Santos Ltd fell 1.1% and 2.5%, respectively.

New Zealand’s benchmark S&P/NZX 50 index closed 0.5% higher at 12,394.34.