The sharemarket has suffered it largest one day fall in almost six weeks due to disappointing Chinese economic figures and increasing tension over Ukraine’s Crimea region.

IG market strategist Stan Shamu said weaker than expected Chinese economic data had weighed upon market sentiment for most of the week.

But investors were now more concerned about what could happen after a controversial referendum on Crimea becoming part of Russia is held over the weekend.

“Going into the weekend, people would have really wanted to see a bit of improvement in the Ukraine-Russia situation, but it continues to escalate,” Mr Shamu said.

“It’s a situation of safety first at the moment and as a result equities are really suffering heavily.”

Official Chinese figures released late on Thursday showed a sharp decline in industrial output in February, adding to concerns about the economic outlook for Australia’s biggest trading partner.

Russia’s decision to position more troops near the Ukrainian border ahead of this weekend’s referendum in Crimea has also spooked investors globally.

US and Russian diplomats are due to meet in London in a bid to defuse the crisis.

Russia has been warned of a serious backlash over the referendum in Crimea, a vote which the West says is illegal.

On the market, the resources sector fell heavily, with BHP Billiton dropping 74 cents to $35.66, Rio Tinto lost $1.57 to $61.50 and Fortescue Metals dumped 14 cents to $4.98.

Among the major banks, Westpac shed 60 cents to $33.65, Commonwealth Bank dropped 71 cents to $75.25, ANZ weakened 36 cents to $31.87 and National Australia Bank was 43 cents lower at $34.33.

Telstra sagged seven cents to $5.01.

KEY FACTS

* At the close on Friday, the benchmark S&P/ASX200 index was down 83.2 points, or 1.54 per cent, at 5,329.4 points.

* The broader All Ordinaries index was down 82 points, or 1.51 per cent, at 5,347.1 points.

* The March share price index futures contract was down 87 points at 5,326 points, with 53,326 contracts traded.

* National turnover was 1.48 billion securities worth $3.9 billion.