The share market has slumped two per cent to hit its lowest level in more than two years, as a fall in Chinese manufacturing activity stokes concerns about the global economy.
The benchmark index of the top 200 companies closed below 5,000 points for the first time since July 19, 2013.
Shares are still being impacted by the US Federal Reserve’s recent decision to keep US interest rates on hold, CMC Markets chief market strategist Michael McCarthy said, which was partly due to global growth concerns.
Disappointing manufacturing data from China on Wednesday exacerbated the negative sentiment.
“The fear created by the Fed is the backdrop, and today’s trigger was that PMI data,” Mr McCarthy said.
“Although the market was under pressure leading into that number, that has clearly added weight, suggesting that was the dominant factor on the day.”
The data from China showed further contraction in the country’s manufacturing sector in September to a six-and-a-half-year low.
Asian markets slumped in the wake of the data, while there were earlier sell-offs on markets in New York and Europe, partly caused by the Volkswagen emissions scandal.
Locally, Commonwealth Bank dropped $2.20 to $71.60, Westpac shed $1.14 to $29.97, National Australia Bank surrendered 71 cents to $29.80 and ANZ was 84 cents weaker at $26.99.
BHP Billiton fell $1.06 to $22.80 on weaker commodities prices and worries about global growth, while Rio Tinto lost $1.20 to $47.99 and Fortescue Metals dumped 10.5 cents to $1.81.
Telstra dipped five cents to $5.62 while Medibank Private firmed two cents to $2.36.
Also to rise was agricultural chemicals firm Nufarm, which jumped 66 cents to $7.73 after a 15 per cent lift in annual profit.
KEY FACTS
* At 1624 AEST on Wednesday, the benchmark S&P/ASX200 index was down 105.5 points, or 2.07 per cent, at 4,998.1 points.
* The broader All Ordinaries index was down 98.4 points, or 1.92 per cent, at 5,032.4 points.
* The December share price index futures contract was down 101 points at 4,995 points, with 36,066 contracts traded.
* National turnover was 1.45 billion securities worth $4.64 billion.
