The Australian share market suffered its worst day of losses since March as rising bond yields deter equity investors.
The benchmark S&P/ASX200 index on Friday finished down 121.1 points, or 1.69 per cent, at 7,042.3, while the broader All Ordinaries fell 120.9 points, or 1.64 per cent, to 7,244.1.
The local bourse finished the week 2.24 per cent lower, wiping away gains made since the start of the year.
US indices were all in the red overnight, with the Dow Jones dipping 1.1 per cent and the S&P500 and Nasdaq both down 0.8 per cent.
But losses locally and on Wall Street are nothing compared to riot-riven France, where the CAC 40 index plummeted 3.1 per cent.
Labour market data from across the drink showed US companies added almost half a million jobs in June, exhibiting a stubborn resilience that will worry the Federal Reserve and raise the likelihood of more interest rate rises.
Following the lead of its American equivalent, Australia's 10-year government bond yield increased 13 basis points to 4.25 per cent, the highest level since 2014.
As yields for low-risk government bonds increase, relatively higher-risk equities become less attractive for investors, Pepperstone chief market strategist Chris Weston explains.
"Essentially, people say to themselves there's better opportunities in the bond market," he told AAP.
"It makes the investment less attractive, and that's what we're seeing now.
"But also from a consumer perspective, the cost of capital is going up."
Consumer discretionary stocks took a beating as a result, down 2.4 per cent.
Online fashion platform Cettire sank 6.5 per cent and internet retailer Kogan dropped 3.5 per cent.
While defensive sectors - such as utilities and consumer staples - fared better, they were still comfortably in the red, suggesting investors were intent on dumping equities across the board, Mr Weston said.
US non-farm jobs data set to be released later tonight and inflation figures next week will further shape traders' risk appetites.
Real estate stocks were the worst-performing sector, down 2.7 per cent, with industrial property landlord Goodman Group falling 3.8 per cent.
Afterpay owner Block led the losses for the IT sector, down 5.5 per cent, while logistics software company Wisetech slipped 2.3 per cent to $75.05.
Heavyweight miners BHP, Rio Tinto and Fortescue slid 1.5 per cent, 0.9 per cent and 0.4 per cent respectively.
Gold miner Northern Star dropped 3.8 per cent and Aeris Resources fell 16.3 per cent after withdrawing earnings guidance for 2022/23 due to production shortfalls at two of its mines.
Paladin is 2.7 per cent lower after aborting the attempted sale of its Michelin joint venture project in Labrador, Canada.
The company said it was pleased to retain a 75 per cent stake in the uranium deposit.
Regis Resources was a green drop in a sea of red for materials stocks, up 1.6 per cent after the gold miner reported a record haul of 458,354oz.
RBC Capital Markets analyst Alex Barkley said the strong result and de-risking of Regis' McPhillamys mine in NSW would continue to move the stock higher.
CBA was the worst of the big four banks, down 1.7 per cent to $98.73 a share.
Westpac shed 1.4 per cent, NAB dropped 1.2 per cent and ANZ was 1.1 per cent lower.
Oil and gas producer Woodside weakened one per cent and health care heavyweight CSL was 2.1 per cent lower.
In positive news, medicinal cannabis and psychedelics developer Incannex is on a high, up 9.1 per cent after receiving ethics approval to start clinical trials for a sleep apnoea drug.
The Australian dollar fell against its US counterpart, buying 66.34 US cents from 66.62 at Thursday’s ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday down 121.1 points, or 1.69 per cent, at 7,042.3.
* The broader All Ordinaries fell 20.9 points, or 1.64 per cent, to 7,244.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.34 US cents, from 66.62 US cents at Thursday’s ASX close
* 95.22 Japanese yen, from 95.79 Japanese yen
* 60.92 Euro cents, from 61.37 Euro cents
* 52.07 British pence, from 52.40 pence
* 107.65 NZ cents, from 107.64 NZ cents.
