More than $40 billion has been wiped from the share market’s value as concerns about China’s economy spark a global sell-off.
The main indices fell more than 2.5 per cent in morning trade, taking the market to a new two-year low.
The resources sector was the hardest hit, taking cues from Monday’s rout for the sector on European markets, while energy and banking stocks were also down.
“It’s been a while since we’ve seen BHP off six per cent, but that’s what is happening today and the worry is that the rout is not yet done,” Australian Stock Report head of research Chris Conway said.
The ASX200 index could fall as low as 4,700 points now it has dropped past the key support level of 5,000, he added.
At noon, BHP was down six per cent, Rio Tinto was down 4.4 per cent, and Fortescue Metals was 4.3 per cent weaker.
Energy stocks were also hit hard, with Santos down 7.3 per cent, Oil Search 3.8 per cent lower and Woodside 3.6 per cent worse off.
Three of the big four banks had dropped more than two per cent, while Commonwealth Bank was 1.6 per cent lower.
The plunge on world markets was prompted by poor Chinese industrial profits data, which also hit prices of key commodities such as oil and copper.
KEY FACTS
* At 1200 AEST on Tuesday, the benchmark S&P/ASX200 index was down 137.5 points, or 2.69 per cent, at 4,976 points.
* The broader All Ordinaries index was down 132.6 points, or 2.58 per cent, at 5,012.5 points.
* The December share price index futures contract was down 149 points at 4,957, with 23,591 contracts traded.
* National turnover was 789 million securities worth $2.06 billion.