News: XFJ Australian shares plunge 1% as rate-hike concerns persist

July 30 (Reuters) - Australian shares dropped more than 1% on Tuesday amid broad-based selling, with banks and commodities leading the losses, while investors remained nervous about whether the economy can weather tighter monetary conditions at home.

The S&P/ASX 200 index (xjo) was down 1.1% at 7,901.5 points, as of 0023 GMT. The benchmark closed 0.9% higher on Monday.

Australia's June-quarter consumer price data is due on Wednesday. Inflation is likely to have accelerated to 3.8% from 3.6% in the prior quarter, fuelling concerns the Reserve Bank of Australia could hike interest rates when it meets on Aug. 6.

Banks .AXFJ lost 1.1% and were the top losers in the benchmark index on fears of a potential rate hike. Shares of Commonwealth Bank of Australia (CBA) , the country's largest lender, dropped nearly 1%.

Miners .AXMM slumped 1.8% with sector majors BHP Group (BHP) , Rio Tinto (RIO) and Fortescue (FMG) dropping 1.4%, 1.1% and 8.8%, respectively.

BHP and Canadian miner Lundin Mining LUN.TO announced plans to take over copper miner Filo Corp FIL.TO for $3.25 billion.

Chinese iron ore futures DCIOcv1 on the Dalian Commodity Exchange edged 0.1% lower.

Energy companies .AXEJ were trading 0.9% lower following a slump in global oil prices. Shares of Woodside (WDS) and Santos (STO) dropped 1.1% and 1%, respectively. Brent crude LCOc1 futures fell 0.2% to $79.60 a barrel while U.S. West Texas Intermediate (WTI) crude CLc1 lost 0.24%.

Australian gold stocks .AXGD dropped 1.2% as bullion prices XAU= were trading 0.1% lower at $2,381.20.

The U.S. S&P 500 index .SPX and the Nasdaq .IXIC were mostly flat on Monday. S&P 500 E-minis futures EScv1 were down 14 points. U.S. Dow Jones Industrial Average .DJI fell 0.12% at 40,539.93 points.

The yield on benchmark 10-year Treasury notes US10YT=RR rose to 4.1783%, compared with its U.S. close of 4.178%.

The Aussie dollar was trading 0.06% stronger against the greenback at A$0.65 on Tuesday.

New Zealand's benchmark S&P/NZX 50 index (nz50) jumped 0.6% to 12,392.6 points.