Australian stocks are lower after the US Federal Reserve’s decision to further taper its stimulus program added to investor concerns about the decline in emerging markets.

Investors have been pulling out of emerging markets in recent weeks as the US Federal Reserve winds back its asset buying program, which has created large flows of money into developing economies.

IG market analyst Chris Weston said the move away from emerging markets was exaggerated overnight by the Fed’s decision to taper the asset buying program by another $10 billion a month.

“The Fed created all this easy money, which made its way into emerging markets and at some stage that had to come out and its coming out quite rapidly,” he said.

Mr Weston said the move contributed to a sell off on global markets overnight, which pushed the local market down more than one per cent at the open.

The worst performer on the market was Treasury Wine Estates, which lost 75 cents, or more than 16 per cent, after downgrading its earnings guidance in the wake of weaker than expected sales.

The big four banks were all lower, with the Commonwealth Bank down 73 cents at $74.19, while National Australia Bank lost 36 cents to $33.24, ANZ fell 33 cents to $30.03 and Westpac dropped 37 cents higher $30.83.

Resources stocks also sold off. BHP Billiton was down 46 cents at $36.40, while Rio Tinto dropped 25 cents to $65.55 and iron ore miner Fortescue Metals lost nine cents to $5.21.

Telstra was three cents weaker at $5.09.

KEY FACTS

* At 1015 AEDT on Thursday, the benchmark S&P/ASX200 index was down 60.9 points, or 1.16 per cent, at 5,168.1 points.

* The broader All Ordinaries index had lost 59.1 points, or 1.13 per cent, at 5,181.5 points.

* The March share price index futures contract was 57 points lower at 13,074 points, with 5,117 contracts traded.

* National turnover was 318 million securities worth $905 million.