May 25 (Reuters) - Australian shares slumped for a fourth straight session on Thursday, with miners and financial stocks leading declines, while winemaker Treasury Wine Estates tanked after warning of squeezing demand and higher packaging costs.

The S&P/ASX 200 index fell 0.7% to 7,165.3 by 0038 GMT. The benchmark ended 0.6% lower on Wednesday.

Treasury Wine Estates slumped as much as 7.8% after it warned that inflation is crunching demand for its commercial-grade wine and driving up packaging costs. It was among the top losers on the benchmark index.

Miners declined 1.7% and touched their lowest level since late March, as steel prices slumped in China on economic recovery worries.

Rio Tinto and BHP Group shed 1% and 1.3%, respectively.

Banking stocks lost 0.7%, with the so-called "Big Four" banks down between 0.3% and 0.7%.

Gold stocks slid 2.2% to hit an over seven-week low. Gold prices held steady after minutes from the U.S. Federal Reserve's last meeting signalled a likely pause in the rate-hike campaign in June.

Sector majors Newcrest Mining and Northern Star Resources declined 1.2% and 2.9%, respectively.

Meanwhile, a lack of progress on U.S. debt ceiling talks also kept investors on edge. Domestic real estate and energy stocks also retreated 0.8% and 0.1%, respectively.

In New Zealand, benchmark S&P/NZX 50 index fell 0.1% to 11,965.39.

The Reserve Bank of New Zealand (RBNZ) raised cash rate by another 25 basis points to the highest in more than 14 years at 5.5% on Wednesday, while signalling an end to its most aggressive hiking cycle since 1999.

RBNZ Governor Adrian Orr said the committee was confident in the level of restrictiveness of interest rates at the present point.

Shares of Fonterra Co-operative Group rose 3.5% after the dairy giant raised earnings forecast for fiscal 2023, while expecting to pay a lower price for milk to its farmers. (Reporting by Poonam Behura; Editing by Shailesh Kuber)