SYDNEY, AAP – Shares have had a mid-session collapse on the Australian market after New Zealand’s central bank hiked rates.

The ASX went from gains to losses following the RBNZ decision to raise rates to 0.5 per cent on Wednesday.

Consumer discretionaries and financials were the worst performing shares.

The benchmark S&P/ASX200 index closed lower by 41.9 points, or 0.58 per cent, to 7206.5.

The All Ordinaries closed down 40.3 points, or 0.53 per cent, to 7496.2.

The Australian dollar was buying 72.63 US cents at 1620 AEDT, lower from 72.65 US cents at Tuesday’s close.