News: MFG Financials and miners drag Australia shares lower, interest rate jitters linger

July 6 (Reuters) - Australian shares slid on Thursday, dragged by losses in financials and mining stocks, as investors exercised caution after minutes from the U.S. Federal Reserve's June policy meeting reaffirmed expectations that interest rates will remain higher for longer.

The S&P/ASX 200 index (xjo) fell 0.9% to 7,189.1 points by 0017 GMT, and is set for its worst session in nearly two weeks.

Heavyweight financial stocks .AXFJ retreated as much as 0.9%, falling most in value since June 26. All of the so-called "big four" banks lost between 0.5% and 1.0%.

Magellan Financial Group (MFG) , top laggard on the broader benchmark, lost as much as 6.2% after the fund manager posted a drop in funds under management whilst reporting outflows in June.

Meeting minutes released by the Fed on Wednesday showed the monetary policy committee was still assessing whether further hikes would be needed, with most members expecting more policy tightening eventually.

Domestic miners .AXMM followed suit to give up 1.8% after copper prices fell overnight as overseas data darkened the demand outlook for growth-dependent metals.

Mining majors Rio Tinto (RIO) and Fortescue Metals (FMG) lost over 1.3% each.

Separately, shares in Bubs Australia (BUB) retreated as much as 8.9% even after the infant formula maker launched a five-point plan to manage working capital and optimise its portfolio.

Energy stocks .AXEJ fell 0.6%, with oil majors Woodside Energy (WDS) and Santos (STO) losing 0.5% and 0.9%, respectively.

Gold stocks .AXGD slipped by 1.7%, while technology stocks .AXIJ struggled for direction and fell marginally by 0.03%.

Bucking the broader trend, New Zealand's S&P/NZX 50 index (nz50) added 0.1% at 12,008.3 points. The benchmark is on track to mark its eighth consecutive session of gains.

Shares in Vista Group International (VGL) advanced 7.1% after the film technology provider disclosed plans to reduce 6%-8% of its global workforce in an effort to turn cashflow positive a year earlier than targeted.