Dec 20 (Reuters) - Australian shares extended losses on Tuesday, as cautious investors stayed away from riskier bets over concerns of major central banks continuing with interest rate hikes for longer would push the global economy into recession.
The S&P/ASX 200 index fell 0.4% by 2326 GMT. The benchmark fell 0.3% on Monday.
The market tracked subdued global markets as investor hopes were dashed after U.S. Federal Reserve downgraded its economic outlook and warned that interest rates will climb higher and stay there longer than many might have hoped.
Tech stocks led losses, dropping 1.7%, following a sharp drop in tech-heavy Nasdaq index overnight.
Miners lost 0.7% as steel futures tumbled in China, with surging local COVID-19 cases prompting traders to book some profit from a recent rally spurred by the easing of coronavirus restrictions.
Iron ore behemoths BHP and Rio Tinto slipped 0.3% and 0.8%, respectively.
Fortescue added 0.2% as the miner signed agreement with Japan's Mitsubishi Corp and Austria-based steelmaker Voestalpine AG to develop a net-zero emissions iron-making prototype plant in Linz, Austria.
Weak bullion prices dragged gold stocks 0.7% lower, with Australia's largest gold miner Newcrest Mining falling 0.4%.
Energy shares edged up 0.1%, with oil and gas major Woodside Energy rising nearly 1% and was the top gainer on the sub-index.
Financials jumped 0.1% with the 'big four' banks gaining between 0.2% and 0.4%.
New Zealand's benchmark S&P/NZX 50 index inched down 0.03% to 11514.55. (Reporting by Navya Mittal in Bengaluru; Editing by Rashmi Aich)