An estimated $32 billion has been wiped from the Australian share market due to indications of further weakness in the Chinese economy.
After posting its worst month since the global financial crisis in August, September is off to a rocky start with a fall of more than two per cent.
“All sectors of the market are significantly lower,” OptionsXpress market analyst Ben Le Brun said.
“We’re watching concerns in China, and the US futures market is pointing significantly lower so we’re bracing for an off night on Wall Street.”
An official measure of Chinese manufacturing activity fell to a three-year low in August, indicating the sector contracted in the month.
Local shares began the day in the red and fell sharply on the news from China just before noon.
Worries about growth in the world’s second largest economy, and weaker oil prices in Asia, are likely to weigh on the Australian share market in the coming days, Mr Le Brun said.
ANZ Bank dropped 86 cents to $27.07, Westpac shed 90 cents to $30.20, National Australia Bank fell 77 cents to $30.40 and Commonwealth Bank was $1.78 weaker at $73.30.
Among the big miners, BHP Billiton was down 53 cents at $24.65, Rio Tinto fell 92 cents to $49.37 and Fortescue Metals Group gave up 11.5 cents to $1.79.
Energy stocks were also under pressure, with Woodside 64 cents weaker at $31.62 and Santos 34 cents lower at $4.79.
KEY FACTS
* At the close on Tuesday, the benchmark S&P/ASX200 index was down 110.6 points, or 2.12 per cent, at 5,096.4.
* The broader All Ordinaries index was down 105.1 points, or 2.01 per cent, at 5,117.
* September share price index futures contract was 108 points lower at 5,059, with 40,240 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,142.40 per fine ounce, up $US8.70 on Monday’s price of $US1,133.70.
* National turnover was 2.04 billion securities worth $6.4 billion.
