The Australian share market closed weaker on Wednesday as local equities followed a weak lead from Wall Street. The benchmark S&P/ASX200 index finished down 30.8 points, or 0.66 per cent, at 4,624.9 points, while the broader All Ordinaries index was 32.8 points lower, or 0.69 per cent, at 4,694.5 points.

On the Sydney Futures Exchange, the December share price index contract was 36 points lower at 4,633 points, with 36,092 contracts traded. On the S&P/ASX50, around four stocks fell for every one that rose.

On Wall Street overnight, investors pushed down stocks as they digested earnings reports from corporate heavyweights and a surprise interest rate rise in China that may slow that nation's economy. Disappointing news from Apple and IBM pushed the technology heavy Nasdaq down about two per cent.

The benchmark Dow Jones Industrial Average index fell 1.48 per cent. The major miners led the weakness on the local market.

BHP Billiton closed down 28 cents at $40.88 after the Canadian provincial government of Saskatchewan said it would not support the global miner's $US38.6 billion bid for Potash Corp, government sources said on Tuesday. Rival Rio Tinto closed down $1.39, or 1.68 per cent, at $81.21, while Fortescue Metals ended 16 cents lower at $6.20.

Telstra closed down two cents to $2.63 after the telco had earlier dropped to $2.58, a record low since the company first listed on the stock exchange in November 1997.

On Wednesday, the federal government introduced a suite of draft laws that aim to reform the telecommunications sector and support the rollout of the National Broadband Network (NBN). Telstra had asked for the swift passage of the bill.

The banks closed weaker on Wednesday. ANZ closed down 16 cents to $23.57, Westpac was 14 cents lower at $22.59, Commonwealth Bank lost 25 cents to $50.40 and National Australia Bank was down 25 cents at $25.04.

In market news on Wednesday, supermarket giant Woolworths reported a solid start to the 2011 fiscal year, with first quarter sales rising 4.1 per cent. Woolworths closed down nine cents at $28.88, while rival Wesfarmers owner of Coles was four cents lower at $32.93.

The Ten Network rose 13.5 cents, or 9.57 per cent, to $1.545 after the media company confirmed that 15.6 per cent of the company's shares changed hands after the market closed on Tuesday. Despite media reports which say James Packer was the buyer of the shares in Ten, the network still has no formal advice as to the identity of the buyer. Fellow media players were also stronger. Fairfax Media closed up 1.5 cents at $1.50, News Corporation finished 20 cents higher at $16.13.

At, the spot price of gold in Sydney was $1,339.40 per fine ounce, down $US26.60 from Tuesday's local close of $1,366.00. Gold miner Newcrest Mining closed down 72 cents, or 1.78 per cent, at $39.78.

The most traded stock by volume was Chameleon Mining, with 203.47 million shares worth $4.9 million changing hands. Chameleon Mining closed down 0.8 cents, or 27.59 per cent, at 2.1 cents after the gold explorer said it had succeeded in its litigation against Murchison Metals Ltd and Mr Phillip Grimaldi. Preliminary market turnover was 2.81 billion securities worth $5.65 billion, with 390 stocks up, 730 down and 360 unchanged.

The Australian dollar was lower late in Asia on Wednesday after China's move to tighten policy hurt commodity currencies on worries of slower growth in Asia, which would hit demand for Australian exports such as coal or iron ore.

But the Australian dollar's weakness is expected to be short lived, with top tier China data due Thursday expected to show the economy is continuing to grow at a stellar pace, which would boost riskier assets such as the local currency.

The risk to this scenario is if the latest inflation read, also due Thursday, is stronger than anticipated, something that would add to the case for more tightening by the People's Bank of China. The Australian dollar traded at $0.9757, down from $0.9872 late Tuesday, and traded the Yen at 79.415, down from 80.375.