Australian shares fell 0.8 percent on Wednesday to close at February lows after the International Monetary Fund cut its global economic growth forecasts, prompting investors to seek shelter in safe-haven assets. The S&P/ASX 200 index lost 42.9 points to 5,241.3 at the close of trade. The benchmark finished 0.2 percent lower on Tuesday.
New Zealand's benchmark NZX 50 index added 0.2 percent or 10.2 points to 5,245.9. Growth sensitive sectors such as basic materials and consumer cyclicals were the hardest hit, shedding more than 1 percent each. Losses were broad-based, with Challenger Ltd and Fairfax Media Ltd each down around 4 percent.
The Australian index had already lost nearly 6 percent in September, pressured by slowing growth in China, rising bond yields and a sharp fall in iron ore prices - Australia's top export earner. For the year, the benchmark has lost 0.8 percent. Global miners BHP Billiton Ltd and Rio Tinto Ltd tumbled around 2 percent and 1.4 percent, respectively, although iron ore prices found a firmer footing at around $80 a tonne.