News: XEJ Australia shares fall for third day as miners drag on China worries

• China property crisis weighs on miners
• NAB notches best session in a year
• Energy stocks down 1.1%

(Updates to close)

Australian shares ended in the red for a third straight session on Wednesday, dragged by mining stocks as iron ore prices plunged due to the Chinese property sector's worsening liquidity crisis.

The S&P/ASX 200 index (xjo) ended 0.14% down at 7,423.9, having lost 0.24% on Tuesday.

Asian stock markets were tugged lower by fresh concerns about the solvency of property developers and high factory inflation in China, Australia's largest trading partner, which also led to a fall in iron ore and copper futures.

That resulted in the Australian metals and mining index .AXMM shedding 1.9%, with BHP (BHP) , Rio Tinto (RIO) and Fortescue (FMG) dropping between 1.7% and 2.7% each.

Energy stocks .AXEJ tumbled 1.1% despite strength in crude prices, with Woodside Petroleum (WPL) leading losses.

"We've had a couple of days of gains for resources but it looks to be unwinding a little bit at the moment, and we seem to be taking it in turns with the banks," said Henry Jennings, senior analyst and portfolio manager at Marcus Today Financial Newsletter.

"Today's the day that the banks are better and the resources are easier, but it is really on the back of those moves in Dalian iron ore futures."

Financials .AXFJ edged up 0.7%, recouping some of Tuesday's losses. The country's No. 2 lender National Australia Bank (NAB) led gains in its best session in a year, soaring 4.4%, after multiple brokerages raised their price targets on the bank's stock.

The other three of the "Big Four" banks also closed in the black, rising between 0.1% and 0.8%.

Healthcare .AXHJ and tech .AXIJ heavyweights Cochlear (COH) and Afterpay (APT) shed 2.4% and 2.2%, respectively, as high-risk, high-growth sector stocks were sold off during the session.

New Zealand's benchmark S&P/NZX 50 index (nz50) fell 0.52% to 13,022.46, marking its worst intraday drop in more than a week.