The Australian share market has closed sharply lower after its biggest one-day percentage loss for the past nine months.

At the close on Thursday, the benchmark S&P/ASX200 index was 118.6 points, or 2.33 per cent, lower at 4,980.1 while the broader All Ordinaries index was down 115.8 points, or 2.26 per cent, at 4,998.6.

On the ASX 24, the March share price index futures contract was 111 points weaker at 4,962 with 45,828 contracts traded.