(Reuters) - Australian shares extended losses to a second session on Thursday, led by declines in financials, after a report that China may dial down purchases of U.S. government debt rattled Wall Street.
The S&P/ASX 200 index <.AXJO> fell 0.5 percent, or 29.1 points, to 6,067.60. The benchmark lost 0.6 percent in the previous session.
The three major indexes on Wall Street snapped a six-session rally on Wednesday as investors grew jittery after Bloomberg reported that China, the world's biggest foreign holder of U.S. Treasuries, could slow or halt U.S. government bond purchases. [.N]
Australia and New Zealand Banking Group <ANZ.AX> finished 0.2 percent weaker at its lowest close in a week, while Westpac Banking Corp <WBC.AX> and Commonwealth Bank of Australia <CBA.AX> fell 0.5 percent and 0.4 percent, respectively.
Materials stocks reversed early gains in the session to end lower, with heavyweight BHP Billiton Ltd <BHP.AX> slipping 0.4 percent.
Australia's Port Hedland iron ore terminal, used by the nation's top miners, has begun clearing all vessels in its harbour as a tropical storm intensifies off the western Australian coast.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index <.NZ50> registered broad losses and dropped 1.4 percent to finish at 8,250.44, its lowest close since Dec. 8.
Dairy firm A2 Milk Company <ATM.NZ> shed 4.4 percent to touch a near two-month closing low, while Auckland International Airport <AIA.NZ> dropped 2.3 percent, hitting its lowest close in six weeks.
(Reporting by Devika Syamnath in Bengaluru; Editing by Amrutha Gayathri)
