The Australian stock market slumped on Wednesday as the heat fell out of resources and the major banks retreated from early gains. The benchmark S&P/ASX200 index fell 39.7 points, or 0.85 per cent, to 4,648.1 points, while the broader All Ordinaries index lost 41 points, or 0.86 per cent, at 4,720.5. On the ASX24, the December share price index futures contract tumbled 43 points to 4,646, with 27,551 contracts traded, after the system crashed for almost two hours.

National Australia Bank led the gains among the ASX 200, adding 51 cents, or 2.06 per cent, to close at $25.26. The bank announced a 63.2 per cent rise in net profit to $4.22 billion for the 12 months to September 30. ANZ was third among the ASX 200, adding 19 cents, or 0.8 per cent, to $24.04, after saying it had increased its stake in Shanghai Rural Commercial Bank. Commonwealth fell in late trade to end the day down 63 cents, or 1.26 per cent, to $49.55.

Among the miners, BHP Billiton fell 34 cents to $41.49, while Rio Tinto lost $1.71, or 2.03 per cent, to $82.35. The CPI was at the lower end of central bank expectations, making a rate rise on Tuesday less likely. Major retailers ended the day flat, with Harvey Norman steady at $3.43, Myer Holdings Ltd down three cents to $3.76 and JB Hi-Fi Ltd two cents lower at $19.66.

The biggest mover on the market was GPT Group, with 265.9 million shares changing hands for $733.22 million, after Stockland sold its 13.1 per cent interest in the Group, losing $208 million in the process. GPT ended two cents lower at $2.83. Stockland ended the day down three cents at $3.75.

Shares in the operator of the Australian Stock Exchange, ASX Ltd, continued to slide, with political fallout over a possible merger with the Singapore Stock Exchange (SGX). ASX was the third worst performer among the ASX 200, falling $1.37, or 3.54 per cent, to $37.30. Total market turnover was 3.148 billion shares changing hands for $6.61 billion, with 434 shares up, 722 down and 346 unchanged.

The Australian dollar plummeted and short-end bond futures surged Wednesday after Australia's third quarter inflation report came in below expectations. Market and economists' expectations for a November interest rate hike by the Reserve Bank of Australia had surged in recent weeks after a series of hawkish central bank speeches and a steady stream of strong economic data thanks to the country's mining boom.

The RBA's October minutes described the case for further increases as finely balanced, with traders viewing Wednesday's consumer price inflation data as the key to the bank's upcoming decision. For those betting on a hike, the data were particularly disappointing as the consumer price index rose just 0.7% in the third quarter and 2.8% from a year earlier, according to the Australian Bureau of Statistics.

Economists on average had expected a rise of 0.8% over the quarter and 2.9% on year. Core inflation, which is critical for policy making decisions, rose 0.6% in the third quarter ended Sept. 30, compared with a rise of 0.7% in the previous quarter. Following the data, traders sold the Australian dollar aggressively, pushing the currency to its lowest level against the U.S. dollar in a week.

Still, the currency remains about 20% higher than where it was in the middle of this year and its initial run lower after the data had stalled in recent activity. The Australian dollar traded at $0.9739, down from $0.9908 late Tuesday. Against the Japanese yen, the currency traded at 79.525, down from 80.05.