The Australian share market has closed nearly two per cent lower as weaker commodity prices weighed upon the resources sector.
HC Securities senior client adviser Mark Lennox said better than expected US jobs figures on Friday had heightened expectations of a rise in US interest rates.
That pushed up the US dollar, which pulled down the prices of commodities such as oil and gold.
Mr Lennox said resources stocks exposed to the strength of the US dollar were hit hard on Monday.
“Anything with gold and copper in particular seems to be taking the full force of the pain,” Mr Lennox said.
He said slowing economic growth in China was also weighing upon commodity prices.
On Sunday a report showed that in October China recorded its highest trade surplus on record, due to an 18.8 per cent fall in imports. Analysts saw it as a further indication that the Chinese economy is weakening.
In the resources sector, mining giant BHP Billiton fell sharply as it took an additional hit from the tailings dam disaster at the Samarco iron ore mine in Brazil, which is jointly owned by BHP Billiton and Vale.
BHP Billiton said it was reviewing its iron ore production guidance for fiscal 2016 in the wake of the disaster.
BHP Billiton dropped $1.28, or 5.64 per cent, to $21.42.
Rio Tinto dumped $1.80 at $49.00, and Fortescue Metals eased three cents to $2.20.
Among the major banks, Commonwealth Bank was off $1.01 at $75.58, Westpac reversed 36 cents to $31.29, National Australia Bank was down 57 cents at $28.08, and ANZ backtracked 61 cents to $25.36.
Among other stocks, broadcaster Nine Entertainment descended 3.5 cents to $1.545 after the company announced that TV guru Hugh Marks would take over from David Gyngell.
Oil and gas producer Santos was in a trading halt as it sought to raise $3.5 billion through share and asset sales, and appointed an industry veteran as its new chief executive. Santos last traded at $5.91.
Macmahon Holdings dipped 0.05 cents to 9.35 cents as it faces a multi-million-dollar law suit from shareholders angry about its alleged delay in telling them about problems with a major project in 2012.
KEY FACTS
* At 1628 AEDT on Monday, the benchmark S&P/ASX200 index was down 95.5 points, or 1.83 per cent, at 5,119.5 points.
* The broader All Ordinaries index was down 89.4 points, or 1.7 per cent, at 5,180.3 points.
* The December share price index futures contract was down 105 points at 5,117 points, with 40,515 contracts traded.
* National turnover was 2.04 billion securities worth $4.58 billion.
