Australian stocks are weaker at noon, hitting an eight-week low following a sharp drop in business investment.
The benchmark S&P/ASX200 index dropped to its lowest point since April 5 after official figures showed a 4.7 per cent contraction in Australian capital expenditure during the March quarter.
At 12pm AEST, the benchmark S&P/ASX200 index was down 53.8 points, or 1.08 per cent, at 4920.9 points.
The broader All Ordinaries index was down 48.8 points, or 0.98 per cent, at 4910.4.
IG market strategist Evan Lucas said investors were reacting to that drop, even though the data also showed businesses collectively expect to invest $163.018 billion on capital goods by the end of this financial year.
"I know the headline numbers look awful," he said.
The market was already lower before the release of the data, after the OECD lowered its forecast for Australia's economic growth in 2013.
Mining stocks were also taking a hit from the International Monetary Fund's downgrade of growth forecasts for China.
"With iron ore slowing down and China slowing down, it's hurting our market," Mr Lucas said.
BHP Billiton fell 46c to $34.41, Rio Tinto fell 80c to $53.90 and Fortescue Metals Group fell 18.5c to $3.35.
Banking stocks were also down, with National Australia Bank the worst performer, losing $1.34, or 4.4 per cent, to $29.21.
Seven Group Holdings shares were down 19c, or 2.5 per cent, to $7.41 after former Woodside boss Don Voelte was named as its new chief executive.
He was previously in charge of publishing and broadcasting company Seven West Media, in which Seven Group holds a major stake.
The June share price index futures contract was 51 points weaker at 4,930 with 17,699 contracts traded.
National turnover was 592.6 million securities worth $2.8bn.
