The Australian share market has closed two per cent lower, its biggest one-day fall in more than a year.

At the close on Friday, the benchmark S&P/ASX200 index was 108.4 points, or 2.05 per cent,lower at 5,188.3, while the broader All Ordinaries index was down 107.6 points, or 2.03 per cent, at 5,185.7, according to preliminary figures.

On the ASX 24, the December share price index futures contract was 112 points lower at 5,167, with 39,942 contracts traded.