The Australian sharemarket slipped into negative territory on Wednesday as a wave of late selling erased earlier gains driven by property stocks.
The S&P/ASX 200 index lost 17.7 points or 0.22% to 8,213.3, reversing a property-led rise earlier in the day.
Trading volumes remained subdued across the ASX, reflecting caution among investors following a volatile session on Wall Street overnight.
Market participants are awaiting critical U.S. inflation data, which will likely shape expectations for the Federal Reserve's interest rate policy in the coming months.
Late-session selling hit some of the index’s largest companies, as industrial property developer Goodman Group fell 0.6%, exerting pressure on the broader market, while Stockland advanced 1.2%, and Mirvac climbed 1.3%.
Technology stocks, highly sensitive to interest rate expectations, struggled as investors awaited the release of the CPI report.
WiseTech Global dropped 3.7%, BrainChip lost 3% and Computershare slid 2%.
Notable performances came from the resource and retail sectors. International Graphite soared 25% and Pilbara Minerals rose 4.1% after the Western Australian government announced a combined $19 million in loans to support green energy projects.
Baby Bunting surged 10.8% following a strong earnings report. The retailer posted a 37% increase in pro forma net profit, reaching $4.8 million for the full year.
On the bond markets, 10-year and 2-year yields were 0.4% lower apiece at 4.629% and 4.013%, respectively.