Australian shares slumped 3.8 percent on Tuesday to two-year lows as commodities and energy-related counters were hit hard by persistent worries about China's slowing economy. The S&P/ASX 200 index tumbled 195.09 points to finish at 4,918.4, the lowest close since July 2013 and the biggest daily percentage drop since August 24. The benchmark rose 1.4 percent on Monday.
The index is now down nearly 10 percent in the July-September quarter, on track for its worst quarterly performance since 2011. For the month, it is down 5.5 percent, after slipping 8.6 percent in August, its poorest monthly show since the global financial crisis. The S&P/ASX200 Energy index fell 6.7 percent to a decade low while iron ore miners BHP Billiton and Rio Tinto dropped 6.4 percent and 4.6 percent respectively.
New Zealand's benchmark NZX 50 index fell 1.52 percent or 86.71 points to finish the session at 5612.42.