Australian shares slide as strong U.S data sparks rate-hike fears, RBA in focus

Australian shares slipped on Tuesday ahead of a central bank policy decision, as strong U.S. data sparked fears that the Federal Reserve could hike interest rates for longer.

The S&P/ASX 200 index XJO fell 0.4% by 2330 GMT after closing 0.3% higher on Monday. S&P 500 E-minis futures ES1! were up 0.13%.

Data showed U.S. services industry activity unexpectedly picked up in November in the latest sign of underlying economic momentum that could keep the Fed on alert to tighten policy further as it fights high inflation.

In Australia, investor focus is on the central bank's last policy meeting for the year, where it is expected to deliver another modest 25 basis-point hike, a Reuters poll showed.

Energy stocks XEJ dropped 0.9% and were among the top losers on the benchmark, with sector majors Woodside Energy WDS and Santos STO down 1.8% and 2%, respectively.

Beach Energy BPT fell nearly 4% after the contractor of the Waitsia gas project, Clough Ltd, was placed under voluntary administration.

Miners XXMM dipped nearly 1% even though iron ore prices rose overnight on hopes of better demand from top steelmaker China after more cities eased COVID-19 restrictions over the weekend.

Global miners BHP BHP and Rio Tinto RIO slipped 0.7% and 0.6%, respectively.

Tech XXIJ and gold stocks XGD fell more than 2% each.

Financials XFJ were marginally higher, with the so called 'big four' banks up between 0.3% and 0.6%.

New Zealand's benchmark S&P/NZX 50 index NZ50G slid 0.7% to 11,601.06.