Investing.com - Shares in Sydney fell on Wednesday as the scope for further rate cuts appeared slim and consumer prices held near expected levels in the second quarter, with other markets also weaker.
The S&P/ASX 200 fell 1.15%, while the Shanghai Composite was down 0.42% and the Nikkei 225 eased 1.04%.
Australia's headline CPI rose 0.7% quarter-on-quarter, below the 0.8% gain seen, while underlying inflation came in at an expected 0.6% rise.
Earlier in Australia, the June Westpac-MI Leading Index rose a scant 0.02 points to 97.96 in June following a fall in May.
Scope for a further cut in Australia's cash rate is possible from the current record low 2%, but the Reserve Bank must consider financial stability as its main concern, RBA Governor Glenn Stevens said Wednesday.
"The question of whether (cash rates) might be reduced further remains, as I have said before, on the table," Governor Glenn Stevens said in a speech,
Risk-taking behavior most responsive to monetary policy is of the financial type - which is fine up to a point because it is a prerequisite for the "real
economy" risk-taking wanted, Stevens said.
"But, beyond a certain point, it can be dangerous. Deciding when such a point has been reached is, unavoidably, a highly judgmental process," Stevens
said.
"I note that the board's post-meeting statements routinely refer to seeking a stance of policy that will 'most effectively foster sustainable growth and inflation consistent with the target.' The adjective 'sustainable' is used deliberately and financial sustainability is very definitely one of the things we have in mind," he said.
Overnight, U.S. stocks were lower after the close on Tuesday, as losses in the Telecoms, Industrials and Utilities sectors led shares lower.
At the close in New York, the Dow Jones Industrial Average fell 1.00%, while the S&P 500 index declined 0.43%, and the NASDAQ Composite index fell 0.21%.
Expectations for a U.S. rate hike in the near future remain the focus after Federal Reserve Chair Janet Yellen said last week that the Fed is likely to raise rates "at some point this year."
The Greek Parliament was scheduled to vote on further austerity measures on Wednesday.