Australian shares dipped on Tuesday to close at their lowest in more than a week, after global equity markets fell on hawkish remarks by a European Central Bank official, fuelling expectations for stimulus cuts as the world economy improves. Global equity markets eased on Monday and US Treasury yields surged to more than three-year highs, following the ECB official's comments.

The benchmark S&P/ASX 200 Index fell 52.6 points, or 0.9 percent, to 6,022.8. It had added 0.4 percent on Monday. The Australian financial index closed down 0.6 percent, with its biggest drag, Macquarie Group Ltd, losing 1.6 percent. Materials slipped and were the biggest weight on the benchmark, underpinned by a fall in Chinese iron ore futures. Global miner BHP Billiton dipped 1.3 percent to a near four-week low, while rival Rio Tinto Ltd slid 0.7 percent.

In New Zealand, the benchmark S&P/NZX 50 index declined 0.4 percent, or 29.01 points, to 8,298.58. Consumer staples led the decliners, with dairy firm a2 Milk Company Ltd falling 2.6 percent.

Copyright Reuters, 2018