At closing bell, the benchmark S&P/ASX200 dropped by 37.77 points, or 0.5%, to 7,490.09. The broader All Ordinaries index fell 44.87 points, or 0.57%, to 7,788.34.
Trading got off to a downbeat start, on tracking decline in Wall Street overnight on following hawkish comments made Tuesday by Federal Reserve Governor Lael Brainard which sparked fears over the impact of the Fed's monetary tightening. At a conference on Tuesday, Fed Governor Lael Brainard said she expects methodical interest rate increases and rapid reductions to the Fed's nearly $9 trillion balance sheet to bring U.S. monetary policy to a "more neutral position" later this year, with further tightening to follow as needed.
Kansas City Fed President Esther George, a voting member of the Federal Open Market Committee, also in remarks on Tuesday supported a rapid run-off of the Fed balance sheet, and said as well that "50 basis-points is going to be an option that we'll have to consider."
Shares of tech companies declined on tracking fall in US peers amid concerns about accelerated interest rate hikes. Novonix and Block Inc both slumped around 6.9 percent
Shares of financials were up, with the big four banks being notable gainers amid speculation the Reserve Bank of Australia will lift the cash rate by 15 bps as early as June.
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Coal miners stood out on Wednesday, following reports the European Union is considering a ban on Russian coal imports due to its invasion of Ukraine. Russia accounts for over 10 per cent of the world's coal trade. Whitehaven Coal (WHC) rose by 5.5% and New Hope (NHC) by 6.9%.
CURRENCY NEWS: The Australian dollar changed hands at $0.7581 after a recent drop from above $0.762.
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