Dec 12 (Reuters) - Australian shares fell on Monday, with mining stocks leading the decline, as global equities weakened and as investors braced for a potential 50 basis points rate hike by the U.S. Federal Reserve this week.
The S&P/ASX 200 index fell 0.7% to 7,159.70 by 2349 GMT with most sectors seeing a decline. Among global markets, S&P 500 E-minis futures were down 0.26%.
Heavyweight mining stocks fell 1.5%. Sector majors BHP Group and Rio Tinto fell 1.4% and 1%, respectively.
Gold stocks dropped 2.8% and were the top percentage losers the benchmark. Sector heavyweight Newcrest Mining slid 2.7%.
Gold miner St Barbara agreed to merge with peer Genesis Minerals to create a pure-play gold miner focused on the Leonora district of resource-rich Western Australia. Shares of both the companies were halted for trading.
Energy stocks retreated 0.1%.
Prime Minister Anthony Albanese said on Friday Australia will cap coal and gas prices for a year to shave utility bills for households and businesses hit by soaring costs.
Albanese is also set to speak with the gas industry lobby this week over price cap concerns.
Power producers Origin Energy and AGL Energy were among the top losers on the benchmark index.
Technology stocks slid 1%, while banking stocks fell 0.3%
Among individual shares, Tyro Payments slumped as much as 22.5% after rejecting a new A$875 million ($593.43 million) proposal from private equity firm Potentia Capital and ceasing talks with banking giant Westpac.
In New Zealand, benchmark S&P/NZX 50 index fell 0.4% to 11,548.55. (Reporting by Himanshi Akhand in Bengaluru; editing by Uttaresh.V)
