The Australian sharemarket retreated to a two-week low on Tuesday, with technology and financials leading declines as RBA officials maintained interest rates.
The S&P/ASX 200 index lost 30 points, or 0.4%, to close at 8,393.0 as losses in the technology and financial sectors weighed on the market, offsetting gains in materials.
Technology stocks plunged 4%, while the banking sector shed 1.7%, mirroring declines on Wall Street, where profit-taking in tech shares followed news of China's investigation into U.S. chipmaker Nvidia. The probe is the latest escalation in trade tensions between the two nations.
High-performing tech stocks suffered steep losses. Megaport dropped 5.4%, while Xero and WiseTech Global declined 4.4% apiece.
However, BrainChip surged 11.4% after the company announced an A$2.7 million contract with the US Air Force Research Laboratory (AFRL).
Materials stocks rallied, bolstered by China's announcement of plans to adopt a "moderately loose" monetary policy next year, renewing hopes for economic stimulus.
BHP added 3.1%, Rio Tinto surged 4.9% and Fortescue Metals gained 6.2%.
Meanwhile, the Reserve Bank of Australia held interest rates steady at 4.35% during its Tuesday meeting, a level unchanged for over a year. The RBA expressed growing confidence that inflation is moving sustainably toward its target and removed previous language suggesting the possibility of further rate hikes.
On the bond markets, 10-year and 2-year rates were at fresh 10-week lows of 4.147% and 3.772%, respectively.