Jan 16 (Reuters) - Australian shares hit a four-week low on Tuesday dragged down by commodity stocks on weaker underlying prices, while production season kicked off with Rio Tinto's December quarter update.

The S&P/ASX 200 index fell as much as 0.9% to 7,430.60 by 2347 GMT, its lowest level since Dec. 19.

Heavyweight miners led losses on the benchmark, dropping as much as 1.3% to hit their lowest level since Dec. 7.

Iron ore future prices slipped on Monday as top consumer China held its medium-term interest rate steady, defying market expectations.

Rio Tinto dropped nearly 1% to its lowest level since Dec. 7, despite reporting its second highest-ever iron ore shipments in 2023. It also said it expected stimulus measures in China to drive a slow recovery in the world's biggest steel user.

BHP Group and Fortescue fell 1.2% and 1.3%, respectively.

Energy stocks declined 0.9%, and were on track for their biggest daily drop since Dec. 5, after a limited impact of the Middle East conflict on oil production triggered profit taking, following a 2% rise in benchmark prices last week.

Sector major Woodside Energy lost as much as 1.2%, its biggest intraday loss in a month, and Santos dipped 1.4%.

Financials dropped 0.4%, with the 'big four' banks losing between 0.1% and 0.6%.

Consumer stocks retreated 1.1%, with top supermarket chains Woolworths and Coles sliding 1.5% and 1.7%, respectively.

A survey showed that Australian consumer sentiment took a turn for the worse in January, as cost-of-living pressures and higher mortgage rates stoked concerns over finances.

Healthcare stocks declined 0.8%, gold stocks dipped 0.3%, and technology firms fell nearly 1%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index inched down 0.2% at 11,744.72.

(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Rashmi Aich)