Australia's benchmark stock index fell on Thursday, snapping a recent winning streak, as a hawkish interest rate hold from the U.S. Federal Reserve and a sharp rebound in oil prices weighed on investor sentiment across the region.

The S&P/ASX 200 was down 0.83%, shedding 74.9 points to trade at 8,963.7 by early afternoon in Sydney. The decline follows a stronger session Wednesday, when the index climbed 0.60% to close near 9,001 points, extending a rally that had been underpinned by optimism over ongoing diplomatic efforts between the United States and Iran.

The reversal in sentiment Thursday traces largely to the Federal Reserve's latest policy decision. The U.S. central bank held its benchmark interest rate steady but adopted a notably hawkish tone in its accompanying statement, tempering market expectations for near-term rate cuts. That signal, combined with a sharp bounce in oil prices following renewed volatility in the Middle East, dampened the risk appetite that had driven Wednesday's gains across Asia-Pacific equity markets.

Australia's own inflation data added a further layer of complexity to Thursday's trading. Investors had been closely watching the country's June quarter and full second-quarter inflation figures, released Wednesday, with persistent price pressures remaining a central........

© International Business Times