SYDNEY, AAP – A second-half rally on the Australian share market has helped investors end the first day of December with minimal losses.

The market had been down by as much as 0.81 per cent at 1200 AEDT after the US Federal Reserve warned stimulus tapering may need to be accelerated to ease inflation.

However ASX shares including financials and materials improved and trimmed losses.

The benchmark S&P/ASX200 index closed down 20.1 points, or 0.28 per cent to 7235.9 points.

The All Ordinaries closed lower by 29.6 points, or 0.39 per cent, to 7557.8 points.

The Australian dollar was buying 71.66 US cents at 1616 AEDT, higher from 71.21 US cents at Tuesday’s close.