Australian shares finished lower, but stemmed some of their losses on the back of strong Chinese economic data.
Australian shares opened one per cent lower after a US Federal Reserve official said tapering of economic stimulus could begin in October.
But IG market strategist Chris Weston said the local market managed to pare back some early losses in afternoon trade following positive news out of China.
“More positive action from China has put an upside on some of the materials and energy plays,” Mr Weston said.
“The Chinese equity market is up more than one per cent and the HSBC number added further evidence that at least in the short-term Chinese growth is firmly stabilising.”
China’s manufacturing activity expanded in September to a six-month high, a further sign that a rebound in the world’s second-largest economy is gaining momentum on improving demand.
It came after St Louis Fed president James Bullard’s comments weighed on investor sentiment, as it came only days after US Fed chairman Ben Bernanke had suggested quantitative easing would continue.
Uncertainty about a US Congressional deadlock on raising the debt ceiling also weighed on resources stocks.
Mining giant BHP Billiton was down 29 cents to $36.10, Rio Tinto fell 34 cents to $62.57, Fortescue rose three cents to $4.59 and gold miner Newcrest was down $1.07, or 8.1 per cent, at $12.03.
Making news on Monday, Treasury Wine Estates’ chief executive David Dearie has resigned immediately, after just two years in the job.
The company’s shares have fallen 30 cents, or 6.3 per cent, to $4.45.
Perseus shares were down 10 cents, or 15 per cent, at 57 cents after two of the company’s founding directors announced they will depart in November.
The big banks were mixed, with ANZ adding 10 cents to $31.19, Westpac adding five cents to $32.80, National Australia Bank was down three cents to $34.83, but Commonwealth Bank had shed 24 cents to $73.51.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was 24.2 points, or 0.46 per cent, lower at 5,252.5.
* The broader All Ordinaries index was down 25.0 points, or 0.47 per cent, at 5,245.8.
* The December share price index futures contract was nine points lower at 5,260, with 17,094 contracts traded.
* National turnover was 1.37 billion securities worth $3.1 billion.
