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Aug 21 (Reuters) - Australian shares declined on Wednesday as a two-day winning streak gave way to renewed worries about the global economy, with miners and retailers dragging down the broader market.
The benchmark S&P/ASX 200 index .AXJO closed 0.9% lower at 6,483.30 after gaining about 2.2% over the past two sessions.
Financial shares led U.S. stocks lower overnight to end a three-day rally as investors awaited comments from Federal Reserve Chair Jerome Powell at the end of the week. .N
"Concerns about global growth returned to haunt the markets and Australia was doubly affected because of pressure on industrial metals," said Michael McCarthy, chief market strategist at CMC Markets. "Any buying that we did see tended to be focused in domestic sectors - healthcare and utilities - which are not exposed to the trade issues."
The heavyweight mining stocks .AXMM dented the Australian market as Chinese iron ore futures sank to their lowest in 10 weeks after mining giant BHP Group BHP.AX gave a downbeat outlook for steelmaking raw material prices. IRONORE/
Mining giants BHP Group and Rio Tinto (LON:RIO) Ltd RIO.AX ended 2.9% and 2.5% lower, respectively, while iron ore-focused player Fortescue Metals Group FMG.AX lost a tad more than 4%.
Consumer stocks were also among major decliners with the Australia-listed shares of New Zealand dairy firm a2 Milk Co A2M.AX losing more than 13%.
The parent company of the dairy firm ATM.NZ tumbled more than 12% on the New Zealand bourse as it reported lower-than-expected annual profit on higher costs, which ate into gains from robust Chinese sales. lost about 0.6% with all the "Big Four" lenders ending lower.
Stockland Corp SGP.AX finished about 7% lower after the residential developer posted an annual net profit decline of nearly 70% and warned about a softer performance for the 2020 fiscal year. the decline, shares of Australia's biggest casino operator Crown Resorts Ltd CWN.AX gained 1.3% as investors hoped the company's domestic revenue would act as a buffer against volatile package holiday spending. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 also snapped a two-day winning run to close about 1% lower at 10,709.32.
However, home builder Fletcher Building Ltd FBU.NZ finished 3.3% higher after it posted an annual net profit, swinging from a year-earlier loss, boosted by increased sales and higher demand for its building products.