News: XIJ Australian shares hit two-week low, energy top laggard

• All sectors except gold close in negative territory
• Lynas gives up early gains to settle lower
• U.S. inflation data expected later in global day

(Updates to close)

Australian shares closed lower on Tuesday, in line with broader Asia as investors awaited U.S. inflation data that is expected to reinforce the Federal Reserve's stance of aggressive policy normalisation to contain broadening pricing pressure.

The S&P/ASX 200 index (xjo) slipped 0.4% to a two-week low of 7,454, with all sectors except gold in negative territory.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.2% as investors braced for likely red-hot U.S. inflation data that is expected to show prices last month increased by the most in 16-1/2 years.

Energy stocks .AXEJ fell 0.6% despite a rise in oil prices, with sector majors Woodside Petroleum Ltd (WPL) and Santos Ltd (STO) shedding 0.2% and 0.8%, respectively.

"Oil prices have not gone over the crucial $100 per barrel mark as yet.... So, I don't think it's a big enough move for energy stocks to climb at this stage," said Brad Smoling, chief executive officer of Smoling Stockbroking.

Miners .AXMM eased 0.2% as iron ore prices fell sharply on concerns that COVID-related restriction measures in top consumer China would slow the economy's recovery.

Index heavyweights BHP Group Ltd (BHP) fell 0.1%, while Fortescue Metals Group (FMG) was flat. Lynas Rare Earth (LYC) closed lower after rising as much as 2.1% on record quarterly revenue.

Technology stocks .AXIJ tracked their U.S. peers lower and closed down 0.9%, with Xero Ltd (XRO) and WiseTech Global (WTC) shedding 0.6% and 2.2% respectively.

Financials .AXFJ inched lower 0.2%, with the 'Big Four' banks slipping between 0.2% and 1%. Pendal Group (PDL) lost 2.6% after it said asset manager Perpetual's (PPT) A$2.40 billion takeover offer "significantly undervalued" it.

New Zealand's benchmark S&P/NZX 50 index (nz50) fell 0.4% to 11,899.2.