Australian shares closed four per cent lower as fears of a new global economic crisis gripped the local market.

The fall wiped almost $60 billion from the value of Australian stocks on Friday, and took the cummulative loss to around $100 billion over the past week.

Friday’s percentage fall was the biggest since November 20, 2008 – at the height of the global financial crisis.

At 1615 AEST on Friday, the benchmark S&P/ASX200 index was down 171.1 points, or 4.0 per cent, at 4,105.4, while the broader All Ordinaries index was 183.2 points, or 4.21 per cent, weaker at 4,169.7.

On the ASX 24, the September share price index futures contract was down 190 points at 4,052, with 82,572 contracts traded.