Australia shares drop to 3-1/2 month low, Oz Minerals plunges

(Updates to close)

SYDNEY, Dec 11 (Reuters) - Australian shares fell 0.8

percent to a 3-1/2-month low on Wednesday as big banks and

miners weighed on the market, while gold miners jumped on firmer

bullion prices.

Oz Minerals (Stuttgart: OXR.SG - news) , Australia's third-biggest copper

producer, finished down 15.2 percent at an 11-year low after

earlier diving as much as 31 percent after a disappointing

production forecast.

The S&P/ASX 200 index fell 39.4 points to 5,104.2,

its lowest level since August 30. The benchmark finished flat on

Tuesday and has fallen from a 5-1/2 year high of 5,457.3 hit on

Oct (KOSDAQ: 039200.KQ - news) . 28 as investors fret over when the U.S. Federal Reserve

will begin to reduce its stimulus programme.

New Zealand's benchmark NZX 50 index closed almost

flat at 4,704.3, shedding 2.2 points.

(Reporting by Maggie Lu Yueyang; Editing by Eric Meijer)