(Adds details, comments, stocks on the move)
SYDNEY, May 16 (Reuters) - Australian shares edged down 0.2 percent on Wednesday as a slump in miners on the back of weaker metals prices offset support from another record on Wall Street and a strong financial sector.
Gold stocks took a beating after bullion slid below $1,400 an ounce, losing two percent and hitting its lowest in nearly a month as a record rally in U.S. equities and economic optimism undermined the precious metal's safe-haven appeal.
Copper slid to its lowest in nearly two weeks as disappointing economic data fuelled worries about global growth and metals demand.
The banking sector stocks have surged in recent weeks on strong buying led by attractive dividend yields and robust earnings.
"Some of the earnings results are as good as they will get, if banks run from here it will be more because you think the Reserve Bank of Australia will cut rates," said Damien Boey, equity strategist at Credit Suisse (NYSE: CS - news) , noting that valuations were already quite bullish.
"I think they're quite expensive and I'm not sure whether there's enough reward for the risk people are taking."
Elsewhere, defensives were stronger. Top telecoms provider Telstra Ltd jumped 1.4 percent. Consumer retail staples Woolworths Ltd and Wesfarmers Ltd (Other OTC: WFAFF - news) rallied 0.9 percent and 3.1 percent, respectively.
U.S. stocks rose on Wednesday, with the Dow and S&P 500 hitting new all-time highs in a broad market rally as the recent upward momentum persisted.
New Zealand's benchmark NZX 50 index was trading flat, slipping 1.7 points to 4,644.6.
STOCKS ON THE MOVE
* Virgin Australia Holdings Ltd dropped 7.2 percent to four-week lows of A$0.43 after it issued a profit warning, saying even though it expects to record a positive underlying profit before tax for the fourth quarter, the current FY 2013 underlying profit will be below FY 2012.
* Australian Infrastructure Fund Ltd plunged 94.5 percent to A$0.175 after the company announced it will be returning cash to shareholders and winding up after selling its assets
(Reporting by Thuy Ong; Editing by Jacqueline Wong)