Australia's share market has tumbled to its lowest close since September 18 after stronger-than-expected jobs data scuppered hopes of further Reserve Bank interest rate cuts.
The S&P/ASX200 dropped 46.1 points on Thursday, down 0.52 per cent, to 8,753.4, as the broader All Ordinaries lost 44.9 points, or 0.49 per cent, to 9,034.5.
A surprise drop in unemployment to 4.3 per cent in October prompted interest rate markets to slash expectations for future cuts, dragging on rate-sensitive sectors such as IT stocks (-3.9 per cent), real estate (-2.8 per cent), financials (-0.8 per cent) and industrials (-1.2 per cent).
The drop was likely the beginning of a consolidation that would persist while market players adjusted their portfolios, Moomoo market strategist Jessica Amir said.
"It's a bit of a wake-up call - don't expect what has been going up over the past 10 months to continue to go up for the rest of the year," she told AAP.
"Big money is chasing international companies that are going to do well from the global economic slowdown, not just from Australia."
Buyers returned to Commonwealth Bank after it tanked more than 10 per cent in four sessions, wiping more than $26 billion from its value to leave it with a market cap at $265 billion.
Its big-four competitors sold off, led by ANZ's tumble of almost five per cent to $36.94, wiping most of the gains from its post-earnings rally.
The raw materials sector offered an island of green in the sea of red, rising 1.7 per cent as risk sentiment supported gold stocks.
The precious metal rose to $US4,215 an ounce, lifting names such as Northern Star, Newmont and Evolution between 2.5 per cent and 3.8 per cent.
Fortescue was the best of the large caps, rising 2.4 per cent to $20.44, while BHP and Rio Tinto edged upward as iron ore futures recover from recent lows.
Investors continued to buy up lithium producers, with Liontown and Pilbara Minerals surging more than 10 per cent.
The energy sector took a hammering, down 2.1 per cent as oil oversupply worries weighed on crude prices, which took Woodside (down 2.8 per cent) and Santos (-2.3 per cent) with them.
Cloud accounting provider Xero was the worst of the big tech sector names, plummeting nine per cent as questions lingered about its global expansion despite a record profit result for the recent half.
The sell-off in real estate stocks was widespread and unrelenting, with drops of more than three per cent for GPT Group, Stockland, Scentre, Mirvac and Vicinity Centres, which tanked almost five per cent.
The defensive sector of health care only managed to eke a 0.2 per cent gain, as investors continued to nibble at CSL, which remains at nearly seven-year lows despite a 1.6 per cen t improvement on Thursday.
Defence technology Droneshield was the top-200's worst performer, crumbling by more than 30 per cent after chief executive Oleg Vornik and chair Peter James offloaded more than $60 million in incentive stock that vested last week.
GrainCorp tumbled more than ten per cent after its full-year net profit dropped by more than a third due to weaker performance in its international business.
In other news the competition watchdog has said it would not stand in the way of Seven West's merger with Southern Cross Media, with a blessing from the Australian Communications and Media Authority the final hurdle for the pair's union.
The Australian dollar is buying 65.57 US cents, up from 65.29 US cents on Wednesday, with the currency spiking shortly after the jobs data release.
ON THE ASX:
* The S&P/ASX200 lost 46.1 points, or 0.52 per cent, to 8,753.4
* The broader All Ordinaries fell 44.9 points, or 0.49 per cent, to 9,034.5
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 65.57 US cents, from 65.29 US cents at 5pm on Wednesday
* 101.59 Japanese yen, from 100.98 Japanese yen
* 56.61 euro cents, from 56.40 euro cents
* 49.99 British pence, from 49.72 British pence
* 116.12 NZ cents, from 115.49 NZ cents
