The Australian share market finished more than one per cent lower after better than expected jobs data cut the chance of another interest rate cut.
Analysts say interest rates will stay on hold for much of 2013 because of better than expected jobs figures released on Thursday.
IG Markets strategist Evan Lucas said weaker commodities prices also affected the market, with the big miners registering steep falls.
“The iron price fell to around $US139 per tonne overnight and started the rout with regards to the materials sector,” Mr Lucas said.
“And the reason the jobs data has impacted the market quite heavily is because it rules out the likelihood of a rate cut anytime soon.”
Australia recorded its strongest jobs growth in more than a decade in February, with total employment rising by 71,500.
The weakness on the local market came despite stocks in the United States posting their longest winning streak in more than 16 years.
Australia’s biggest miners Rio Tinto, BHP Billiton and Fortescue Metals Group all suffered losses.
BHP Billiton fell 82 cents to $35.09, Rio Tinto reversed by $1.40 to $60.70 and Fortescue Metals Group lost 26 cents to $3.97.
The major banks were mixed, with National Australia Bank 26 cents lower at $30.69, ANZ was down 30 cents at $28.18, Commonwealth Bank fell 50 cents to $68.88 and Westpac was down 37 cents at $30.13.
Myer shares were 17 cents, or 4.1 per cent, higher at $3.07 after posting a better than expected first half profit of $88 million.
Freight rail operator Aurizon gained three cents to $4.00 after it won a coal haulage contract in Queensland with mining giant Xstrata.
On Wall Street, the benchmark Dow Jones Industrial Average set a new record closing for the seventh straight day.
KEY FACTS
* At the close on Thursday, the benchmark S&P/ASX200 index was 60.2 points, or 1.18 per cent, weaker at 5,032.2
* The All Ordinaries index was 60.6 points, or 1.19 per cent, lower at 5,043.8.
* The March share price index futures contract was 66 points down at 5,033, with 48,057 contracts traded.
* National turnover was 999.7 million securities worth $2.25 billion.
