Australian shares fell for a third consecutive session on Wednesday, weighed down by iron ore miners due to a plunge in Dalian prices, while a2 Milk led New Zealand stocks higher following an upbeat quarterly report from a smaller dairy firm.

Iron ore-focused miners Fortescue Metals Group and Rio Tinto fell more than 5% and 3%, respectively, after prices of the steel-making ingredient tumbled over 4% in China.

The benchmark ASX 200 dipped 0.1% to 7,272.5, also weighed down by a more than 1% drop in the country's top two lenders.

Australia shares set to dip at open, NZ falls

Second-tier lender Bank of Queensland fell 4.3% after warning that its margins in the coming year would decline due to stiff competition and a low interest rate environment.

Star Entertainment rebounded 6.5%, after losing a quarter of its value in just two sessions on worries that governance concerns would result in even tighter regulatory scrutiny that has plagued the sector and especially its larger rival Crown Resorts.

Star looked to calm nerves in an after-market announcement on Tuesday, saying it had taken measures to address a confidential report by KPMG that showed failings to rein in money laundering and fraud at its two resorts.

a2 Milk surged over 12% after Bubs Australia reported its first-quarter results that showed a 156% jump in China-facing revenue, and asserted that it had largely overcome COVID-19 disruptions.

The New Zealand dairy firm has lost nearly 60% of its value since December last year as travel restrictions and COVID-19 disruptions hit its largest market, China.

a2 Milk's gain helped New Zealand stocks snap a six session run of losses, closing 0.2% higher at 13,025.18.