(Reuters) - Australian shares fell on Thursday to break a five session run of gains, with financials and real estate stocks accounting for most of the losses.
The S&P 500 ended slightly lower on Wednesday pressured by the financial sector after the Federal Reserve announced a widely expected interest rate hike but kept its rate outlook for coming years unchanged as it projected faster U.S. economic growth.
"The biggest risk certainly is what's going to happen in U.S. We're seeing a weakening in the U.S. dollar, with the risk being that the Fed doesn't live up to standards simply because inflation is too weak.
"If that happens the U.S. dollar would weaken even more and commodities would do better," said Mathan Somasundaram, Market Portfolio Strategist at Blue Ocean Equities.
The S&P/ASX 200 index declined 0.2 percent or 10.5 points to 6,011.3 at the close of trade. The benchmark ticked up 0.14 percent on Wednesday.
Financials were among the biggest drags on the benchmark on Thursday, with heavyweights Australia and New Zealand Banking Group Ltd and National Australia Bank Ltd dipping 0.6 percent and 0.4 percent, respectively.
Real estate stocks accounted for most of the losses on the benchmark after driving the gains on Wednesday.
Shopping centre operator Westfield Corp declined 1.8 percent after posting a record percentage gain on Wednesday when it announced a trade sale to European property giant Unibail-Rodamco.
Materials and energy stocks gained, helping to cap the benchmark's losses. Mining company South32 Ltd climbed 3.2 percent, while Caltex Australia Ltd rose 3.7 percent.
On the other hand, New Zealand's benchmark S&P/NZX 50 index rose 39.170 points or 0.47 percent, driven by broad based gains, to finish the session at a record high of 8,323.750. The index registered six consecutive sessions of gains, its best winning streak since October.
Seven out of nine sectors accumulated profits, with consumer staples and materials pushing up the index.
a2 Milk Company Ltd and Fletcher Building Ltd rose 2.2 percent and 2.3 percent, respectively.
(Reporting by Aditya Soni in Bengaluru; Editing by Eric Meijer)
