The body of water that separates Australia from Asia is the Arafura Sea. This sea lies to the north of Australia and is bordered by the Torres Strait to the northeast, which separates Australia from the Papua New Guinea islands. The Arafura Sea is significant for its biodiversity and is home to numerous marine species, including fish and coral reefs. Additionally, it plays a critical role in regional climate patterns and serves as a vital shipping route for trade between Australia and its Asian neighbors.