Shares on the Australian market have closed 0.3 per cent lower despite paring back some losses in the last hour of trade.

The benchmark S&P/ASX200 index closed 17.9 points, or 0.27 per cent lower, at 6,682.40 on Wednesday.

The index fell as low as 6630 early in the session as traders took cues from overnight declines on Wall Street and booked profits in a holiday shortened trading week.

The All Ordinaries closed down 19.2 points, or 0.28 per cent, to 6942.90.

Shares across Asian markets regained some momentum as investors bet on continuing stimulus next year to deal with the global impact of the pandemic.

The Aussie dollar was buying 76.61 US cents at 1615 AEDT, after spiking from 75.95 US cents at Tuesday’s close.