News: BHP Australia shares end lower on interest rate jitters; BHP falls

	  ASX 200 falls for third straight session 

	  Mining stocks close at lowest since May 14 

	  Financial stocks log lowest close since May 3 

(Updates to close)

Australian shares on Thursday logged their lowest close since May 2, amid concerns of a delay in interest rate cuts, while BHP hit a two-week low after walking away from its plan to take over London-listed rival Anglo American.

The S&P/ASX 200 index (xjo) ended 0.5% lower at 7,628.20, its third straight session of losses.

After competitor Anglo American AAL.L rejected an appeal for an extension, global miner BHP (BHP) on Wednesday, withdrew from its $49 billion plan to buy Anglo, putting an end to the six-week pursuit. Shares of the mining giant closed down 1.7% at its lowest since May 15.

Alarming inflation and consumer spending data from Australia this week bolstered expectations that interest rates would not be lowered any time soon, denting risk appetite.

Investors now await the U.S. inflation reading, due on Friday, for cues on where interest rates are headed in the world's largest economy.

"Risk appetite was in short supply on the Australian market today due to a combination of the weak U.S. lead and the uptick in April's inflation data," Tim Waterer, chief market analyst at KCM Trade said.

"A lower core PCE print would be a boost for risk appetite, as it could nudge forward the timeline for expected rate cuts. Conversely, an upside beat could rattle financial markets as a move higher in inflation could delay rate cuts."

Heavyweight miners .AXMM led losses on the benchmark, falling 2.1%, to close at lowest level since May 14, as iron ore prices fell overnight.

Gold stocks .AXGD ended down 3% at its lowest level since May 6, tracking a decline in bullion prices.

Rate-sensitive financials .AXFJ shed 0.2%, closing at the lowest level in about four weeks, with top lender Commonwealth bank of Australia (CBA) down 0.3%.

New Zealand's benchmark S&P/NZX 50 index (nz50) dropped 1% to finish the session at 11,557.21 points.