The sharemarket closed more than 1 per cent lower as weak GDP figures prompted investors to dump banking stocks.
At the close today, the benchmark S&P/ASX200 index was down 65.6 points, or 1.34 per cent, at 4835.2.
The broader All Ordinaries index was down 61.5 points, or 1.26 per cent, at 4825.2.
The local market posted its 9th daily fall in 12 trading days, following Wall Street's negative lead.
CMC Markets analyst Michael McCarthy said disappointing GDP figures and a weaker outlook in Japan were affecting the local market.
"Weaker than expected GDP numbers are weighing on the market today," he said. "We could see further short-term moves down."
Mr McCarthy said a reversal would require a short-term turnaround in sentiment.
"There's also some disappointment from the Japanese Prime Minister (Shinzo) Abe with his economic restructuring seen as too timid," he said.
Figures released today showed Australia's gross domestic product grew by 0.6 per cent in the first three months of the year, and at an annual rate of 2.5 per cent, the first time it was below three per cent since the last quarter of 2011.
Mr Abe has outlined a blueprint for rejuvenating Japan's ailing economy with regulatory reforms meant to bring more women into the workforce, coax cash-hoarding corporations into investing more and promote industrial innovation.
Locally, the big four retail banks represent four out of the six largest stocks on the ASX and their falls are driving down the overall market.
ANZ fell 71c to $27.20, CBA fell 90c to $66.25, NAB fell 66c to $28.95 and Westpac fell 76c to $28.19.
The two large supermarket owners were also being punished, with Wesfarmers down 33c to $38.58 and Woolworths down 23c to $32.32.
Among the major miners, BHP Billiton fell 47c to $33.79 and Rio Tinto fell 77c to $54.36.
Gold stocks were also weaker as the price of the precious commodity continues to languish.
Goldminer Newcrest Mining fell 80c to $14.35.
In other news, Billabong shares continued to slide following yesterday's plunge when the company lost half its market capitalisation after flagging asset sales to pay down debt as takeover talks collapsed.
The stock was down 1.5c, or 6.5 per cent, to 21.5c.
The June share price index futures contract was 61 points weaker at 4837 points with 31,756 contracts traded.
National turnover was 1.3 billion securities worth $4 billion.
