Australian shares slip after U.S. inflation data raises rate hike bets

Feb 15 (Reuters) - Australian shares slipped on Wednesday as higher U.S. inflation increased bets that the U.S. Federal Reserve would continue with its rate-hiking cycle. The S&P/ASX 200 index fell 0.3% to 7,405.3 by 2345 GMT, after rising about 0.2% on Tuesday. Elsewhere in Asia, Japan's Nikkei rose 0.6% and S&P 500 E-minis futures were down 0.1%. U.S consumer prices increased 6.4% in the 12 months through January, marking its smallest annual rise since late-2021, but faster than the 6.2% that economists had projected. The reading hinted that the Fed could still be on its moderate rate-hike path despite the continued gradual slowdown in inflation trends. Australian banking stocks lost the most on the benchmark, plunging up to 3.1%. All "Big Four" lenders declined. Commonwealth Bank of Australia slumped up to 5.7% after flagging tailwinds from inflationary pressures, rising rates, supply chain disruptions. It saw loan impairment expenses increasing by A$586 million in the half year. Energy stocks tracked lower oil prices and fell 0.5%, with sector majors Woodside Energy Group and Santos Ltd sliding 2.1% and 0.3%, respectively. The mining sub-index swayed between positive and negative territories, while BHP Group and Rio Tinto gained 0.2% and 0.7%, respectively. Fortescue Metals Group , the world's fourth-largest iron ore miner, dropped up to 3% on weaker-than-expected fall in its half-year profit, as declining iron ore prices eroded earnings from record half yearly iron ore shipments. Gold stocks shed 0.9% after bullion prices gave up gains overnight. Newcrest Mining fell 1.3%. In New Zealand, the benchmark S&P/NZX 50 index rose 0.1% to 12089.67. (Reporting by Jaskiran Singh in Bengaluru; editing by Uttaresh.V)

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