AU Evening Wrap: Australia Shares Fall 0.4% as Rate-Cut Hopes Wane

Australia's $S&P/ASX 200 (.XJO.AU)$ closed 0.4% lower at 7813.6 as bank stocks retreated amid increased uncertainty over the likely pace and timing of global interest-rate cuts. The benchmark index pared losses after slumping 1.2% in early trade, weighed by hotter-than-expected U.S. inflation data that economists said may postpone or derail previously anticipated rate cuts.

The heavyweight financial sector lost 0.9% as banks-- $National Australia Bank Ltd (NAB.AU)$, $Westpac Banking Corp (WBC.AU)$, $CommBank (CBA.AU)$ and $ANZ Group Holdings Ltd (ANZ.AU)$--which are typically able to expand lending margins when rates are falling--lost between 0.95% and 1.4%.