Australian stocks fell 2.4 percent to a two-week closing low on Monday as fears of renewed recession in the United States and sustained worries about the eurozone debt crisis prompted a flight to safety. With Australia's June half reporting season wrapped up, investors' attention turned back to a bleak emerging global picture.
The benchmark S&P/ASX 200 lost 100.98 points to hit 4,141.9 points, according to latest available data, adding to a 64.6 point fall last Friday. The fall marked the sharpest single day fall since August 19. Global miners BHP Billiton and Rio Tinto, both fell over 3 percent after gloomy US data and a historic low for an index of the Chinese services sector sent metal prices down.
All four big banks fell, with top lender National Australia Bank leading losses. It fell 3.2 percent. The banks' US peers fell sharply on Friday after a US regulator sued 17 big lenders over losses on about $200 billion of bonds backed by subprime mortgages. Macquarie Group, Australia's top investment bank, dropped 4.4 percent on fears global turmoil will roil its markets linked businesses and profitability. New Zealand's benchmark NZX 50 index fell 0.3 percent to 3,293.13 points.