The benchmark ASX 200 was down over two percent shortly after the morning open, trading at its lowest levels since April.

Resource and consumer-focused companies led the sell-off, which echoed Wednesday's action on markets from New York to London to Tokyo.

Lacklustre US corporate earnings, concerns about President Donald Trump's trade policies, the expectation of tighter monetary policy and geopolitical tensions with Saudi Arabia have fuelled a sense of market unease.

"Investor confidence is hitting lower levels and with no real new positive news, the downside trend continued," said Nick Twidale of Rakuten Securities Australia.