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By Aaditya GovindRao

Oct 22 (Reuters) -Australian shares ended sharply lower on Tuesday as weak global sentiment and decline in commodity prices led to a broad sell-off, while WiseTech Global reversed course to end higher after a lawsuit against its CEO was settled.

The S&P/ASX 200 index .AXJO shed 1.7% to 8,205.7 points, its worst session since Sept. 4, when it fell 1.9% after strong economic data dampened interest rate cut bets.

"The ASX is reacting to the steep fall in the Dow Jones index," said Tim Waterer, chief market analyst at KCM Trade.

"Investors are a bit spooked by the rise in treasury yields (particularly in the 10-year note), which has caused some risk to be taken off the table."

The Dow Jones Industrial Average and S&P 500 closed lower on Monday as Treasury yields rose and investors wary of high valuations awaited earnings from major companies. .N

The benchmark 10-year U.S. Treasury yield jumped to a 12-week high. US/

Meanwhile, Asian stocks turned lower and the dollar stood by multi-month peaks on Tuesday as a sharp sell-off in bonds and a jump in gold suggested investors are hunkering down ahead of the U.S. election. MKTS/GLOB

In Australia, financial stocks .AXFJ lost 1.9%, with top lenders Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX falling 2.2% and 2.1%, respectively.

Tech stocks .AXIJ dropped 0.4%.

Bucking the trend, WiseTech Global WTC.AX gained 2.8% after a court filing showed that a controversial lawsuit against its CEO had been settled. The software logistics firm fell as much as 3.2% earlier in the session.

Miners .AXMM finished 1.2% lower as iron ore prices declined as steel demand in top consumer China showed signs of softening. IRONORE/

The energy index .AXEJ dropped 1.5%, tracking weakening oil prices and dragged by energy infrastructure firm Viva Energy VEA.AX which slipped 6.7% on flagging lower sales and higher costs. O/R

Wholesaler Metcash MTS.AX lost 6.2% after Goldman Sachs analysts downgraded the stock on competition concerns.

New Zealand's benchmark S&P/NZX 50 index .NZ50 slipped 0.9% to 12,813.15 points.

($1 = 1.4959 Australian dollars)

Reporting by Aaditya Govind Rao in Bengaluru; Editing by Varun H K

For more information on DIARIES & DATA:
U.S. earnings diary RESF/US
Wall Street Week Ahead .N/O
Global Economy Week Ahead DATA/
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