Australia's share market has crumbled to its lowest level since June, as concerns about stretched valuations meet a reduced outlook for interest rate cuts.
The benchmark S&P/ASX200 lost 136.2 points on Friday, down 1.59 per cent, to 8,416.5, as the broader All Ordinaries fell 147.7 points, or 1.67 per cent, to 8,686.3.
A stronger than expected US jobs report overnight dampened hopes of incoming interest rate cuts from the world's largest central bank, dragging on equities markets.
The top-200 has tumbled more than seven per cent after hitting an all-time high of 9,115.2 in mid-October, and has fallen each of the past four weeks.
"I guess we all sort of knew that the market had run fairly significantly to the top side," IG market analyst Tony Sycamore told AAP.
"It tried a number of times to break down, and it just hadn't done it, and now, maybe it is starting to look like something more sinister."
The raw materials sector led the losses, sinking almost four per cent, as all 11 sectors traded into the red.
Gold stocks sold off as expectations of higher for longer interest rates weighed on the precious metal's price outlook, with spot prices slipping to $US4,054 ($A6,285) an ounce.
Mixed miners, rare earths producers and lithium plays also fell as investors tempered their expectations for an artificial intelligence revolution.
Iluka was one of the top-200's second-worst performers with a loss of 11 per cent to $6.32.
Energy stocks dropped sharply, down 3.1 per cent ahead of potential peace talks between Ukraine and Russia's leaders, while jitters around the AI narrative weighed on uranium producers.
Coal stocks were broadly lower with Whitehaven, Yancoal and New Hope Corporation down between two and 4.2 per cent.
The heavyweight financials sector slipped 0.7 per cent, as CBA offered a modest, 0.04 per cent glimmer of hope while its big four competitors grinded lower.
CommBank shares are still down more than 12 per cent since its $2.6 billion first quarter profit failed to wow investors earlier in November.
Interest rate sensitive stocks were hit hard, with real estate (-2.0 per cent), IT stocks (-1.0 per cent) and consumer discretionaries (-1.3 per cent) and industrials (-1.0 per cent) all under selling pressure.
Online retailer Kogan lifted 0.7 per cent, despite posting a more than 30 per cent reduction in earnings over the first four months of the current financial year.
The defensive health care and consumer staples segments performed best, trading roughly flat on Friday as Ryman Healthcare outperformed the market, lifting 5.4 per cent to $2.54.
Mayne Pharma tanked by almost 25 per cent after federal Treasurer Jim Chalmers scuppered a $627 million takeover plan by US healthcare giant Cosette, on advice from the Foreign Investment Review Board.
Shares in logistics technology company WiseTech Global rallied 2.4 per cent after the company reaffirmed forward guidance, but its price is still down more than 50 per cent since the same time last year, following a raft of controversies and multiple board resignations.
The Australian dollar is buying 64.47 US cents, down from 64.79 US cents on Thursday at 5pm.
ON THE ASX:
* The S&P/ASX200 fell 136.2 points, or 1.36.2 per cent, to 8,416.5
* The broader All Ordinaries fell 147.7 points, or 1.67 per cent, to 8,686.3
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 64.47 US cents, from 64.79 US cents at 5pm on Thursday
* 101.37 Japanese yen, from 102.08 Japanese yen
* 55.88 euro cents, from 56.26 euro cents
* 49.25 British pence, from 49.63 British pence
* 115.20 NZ cents, from 115.62 NZ cents
