Globally sentiment was hurt by the International Monetary Fund (IMF) cutting its world economic growth forecasts for 2019 and 2020 due to weakness in Europe and some emerging markets. Energy stocks fell 1.5 percent to close at their lowest since January 14 after oil prices slid 2 percent overnight before recovering some ground in early trade.
Australia's No.2 indepedent gas producer Santos Ltd, due to report fourth-quarter production on Thursday, dropped 1.5 percent, while its sector peer Oil Search lost 1.1 percent. The financial index fell 0.6 percent with Australia and New Zealand Banking Group easing 0.4 percent, while its 'Big Four' banking peer and larger rival Westpac Banking Corp lost 0.6 percent, sinking to its lowest close in over two weeks.
The metals and mining index extended losses for a third consecutive session, declining 0.6 percent. BHP Group lost 0.4 percent, while rival Rio Tinto shed 0.5 percent. New Zealand's benchmark S&P/NZX 50 index closed nearly flat, or 8.6 points lower, to finish the session at 9,106.03.
Fuel distributor Z Energy Ltd was the top percentage gainer, rising 2.6 percent, while Synlait Milk Ltd was the top percentage loser, falling 3.2 percent.