Australian shares edged lower on Thursday, as mining stocks fell after steel prices dropped due to sluggish downstream demand, though gains in Sydney Airport after regulators approved its buyout offset some of the losses. The S&P/ASX 200 index (.AXJO) was down 0.1% at 7,394.9 by 1156 GMT. The benchmark had risen 1.3% on Wednesday. Sydney Airport (SYD.AX), up 3%, was one of the top gainers on the benchmark, after the country"s competition regulator approved its A$23.6 billion ($16.92 billion) takeover. read more Among sub indexes, mining stocks (.AXMM) fell 0.6%. Heavyweights BHP Group (BHP.AX) , Rio Tinto (RIO.AX) and Fortescue Metals (FMG.AX) all fell between 0.7% and 1.3%. They were tracking a downturn in Chinese stainless steel futures, which dropped to their lowest in more than three months on Wednesday. Lithium developer Vulcan Energy (VUL.AX) was a bright spot, gaining over 11% after it secured Volkswagen (VOWG_p.DE) as an additional car industry customer for its environmental-friendly lithium hydroxide for automotive batteries. read more Gold stocks (.AXGD) fell 0.56% led by Ora Banda Mining Ltd (OBM.AX), down 5.97%, followed by Auteco Minerals Ltd (AUT.AX), losing 5.63%. Energy stocks (.AXEJ) fell 0.52​%, with Beach Energy Ltd (BPT.AX), down 2.17%, leading declines. Heavyweight Woodside Petroleum (WPL.AX) shed 0.7%. In New Zealand, the benchmark (.NZ50) was down 0.50% at 12,803.62. The top percentage losers were Synlait Milk Ltd (SML.NZ), down 3.46%, followed by Fisher & Paykel Healthcare Corporation Ltd (FPH.NZ), losing 2.18%. Reporting by Arundhati Dutta in Bengaluru; Editing by Rashmi Aich Our Standards: The Thomson Reuters Trust Principles.