Aust stocks close lower

The Australian stock market has slightly narrowed early losses but still closed 0.8% lower after the Federal Reserve's fresh reduction of its stimulus measures weighed on Wall St.

At 1555 AEDT, the benchmark S&P/ASX200 index lost 0.78% to 5,188.1 points, while the broader All Ordinaries index declined 0.79% to 5,199.4 points.

The United States Federal Open Market Committee concluded its monthly meeting with the announcement it would cut its monthly bond purchases by $US10 billion a month, to $US65 billion.

The news led US stocks to close more than 1% lower, with the Dow Jones Industrial Average slumping 189.77 points, or 1.19%, to 15,738.79.