Australian stocks finished lower as investors sold off mining stocks due to weaker commodity prices.
The benchmark S&P/ASX200 index was 38.3 points, or 0.78 per cent, lower at 4888.3 points, while the broader All Ordinaries index was 40.3 points, or 0.82 per cent, weaker at 4873.7.
IG markets analyst Evan Lucas said the major miners suffered as the price of iron ore continued to fall.
"The falls at Rio and BHP have got faster as iron ore continues to slide and there's a bit of a rotation out," Mr Lucas said.
"It's been unfortunately a bit of a disappointing afternoon and we're back to a level that we saw at the start of the morning."
The sell-off came despite the banks receiving a bounce in the wake of last week's falls.
The local market started trading on a negative note as investors took their cues from a poor finish on Wall Street and lower commodities prices during weekend offshore trading.
Better than expected manufacturing data from China published over the weekend gave the local market a boost in earlier trading.
But that data and stronger local retail figures were not enough to stem the losses.
Materials stocks were down significantly, with BHP Billiton falling 79 cents to $34.09 and Rio Tinto off $1.38 cents at $53.80.
Fortescue Metals Group lost nine cents to $3.26.
Australia's big four banks were in positive territory.
ANZ was up 31 cents at $27.85, Commonwealth Bank climbed six cents to $66.92, National Australia Bank advanced 30 cents to $29.30 and Westpac was 56 cents higher at $29.00.
Shares in Cochlear tumbled after the hearing-implant maker reported slowing growth.
Cochlear was down $11.66, or 18 per cent, at $52.88.
Shares in waste management company Transpacific fell after it announced the resignation of its chief executive and downgraded profit estimates.
Transpacific was down 10.5 cents, or 11.8 per cent, at 78.5 cents.
National turnover was 1.54 billion securities worth $4.59 billion.
