The Australian share market closed sharply in the red after bad economic news from the US and Hungary.
The benchmark S&P/ASX200 index finished 123.5 points, or 2.78 per cent, weaker at 4325.9 points by 1615 AEST and the broader All Ordinaries index dropped 121.7 points, or 2.72 per cent, to 4350.7 points, it's lowest in over one month.
On the Sydney Futures Exchange, the June share price index contract was 136 points, or 3.04 per cent, lower at 4,331 points, with 44,651 contracts traded.
Weaker commodity prices and fears over the global growth recovery prompted the sell-off, with the local market opening 100 points lower following declines of over three per cent on Wall Street on Friday evening (AEST).
The US economy added just 41,000 workers in May, down dramatically from the 218,000 added in April, and was worse than expected by economists who had hoped for a pick-up in private sector hiring.
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Patersons Securities associate director John Curtin said the market was looking for a good US jobs number and the May figure spooked the market. "It's put back in focus the recovery in the US," he said.
"There's more fear on the euro zone, sovereign issues, that have flowed on to our market today.
"Today in our market we are reacting to the northern hemisphere and there was nothing specific in our market that pushed our stocks down."
Ord Minnett investment adviser Francesco De Stradis said announcements by Hungary about its fiscal position and risk of default had not helped investor sentiment.
"We've been hammered like they have been in Europe," he said. The major miners fell heavily, with BHP Billiton down $1.33, or 3.51 per cent, at $36.54 and Rio Tinto falling $2.04, or 3.02 per cent, to $65.55.
Banks and financial stocks also suffered heavy falls.
National Australia Bank led the big four banks down, shedding 74 cents, or 3.04 per cent, to $23.62, while ANZ Banking Group lost 62 cents, or 2.74 per cent, to $22.02.
Commonwealth Bank dropped $1.39 or 2.7 per cent, to $50.08 and Westpac Banking Corporation fell 58 cents, or 2.55 per cent, to $22.18.
Australia's biggest investment bank, Macquarie Group, fell $1.88 or 4.25 per cent, to $42.37.
Oil stocks also lost ground as lower oil prices hit home. Woodside Petroleum slipped $1.22, or 2.77 per cent, to $42.77, Oil Search dropped 20 cents, or 3.53 per cent, to $5.46 and Santos gave up 45 cents, or 3.48 per cent, to $12.47.
Among the gold miners, Lihir Gold eased two cents, or 0.5 per cent, to $4.00, while Newcrest Mining backtracked 16 cents, or 0.49 per cent, to $32.25.
By 1636 AEST the spot price of gold in Sydney was trading at $US1216.80 per fine ounce, up $US10.28 on Friday's close of $US1,206.52.
Major retail stocks also fell, both in the consumer staples and discretionary sub-sectors.
Grocer Woolworths lost 17 cents to $26.84, Wesfarmers dropped 80 cents, or 2.75 per cent to $28.29 and Harvey Norman fell 11 cents, or 3.22 per cent, to $3.31.
Stock Move Price
AMP -0.290 5.510
ANZ Bank -0.620 22.020
BHPBilton -1.330 36.540
CBA -1.390 50.080
NAB -0.740 23.620
NewsCorp -0.580 17.750
Rio Tinto -2.040 65.550
TelstraCp -0.060 3.040
WestpacBk -0.580 22.180
Woodside -1.220 42.770
Woolwrths -0.170 26.840
