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MELBOURNE - The Australian stock market closed 1.4 percent lower on Monday, with falls in the resource and banking sector weighing on the local bourse.
At the close, the benchmark S&P/ASX200 index was 52.4 points, or 1.4 percent, lower at 3,683.3 points, while the broader All Ordinaries shed 56.4 points, or 1.53 percent, to 3,624.
At 1616 AEDT on the Sydney Futures Exchange, the March share price index contract was 34 points lower at 3666, on a volume of 18,128 contracts.
"Despite stronger commodity prices overnight we have continued to see weakness in that materials sector and expectations are that we'll probably see softer commodity prices over the next six months," CMC Markets senior dealer Dominic Vaughan said.
"There is nothing on the macro point that is going to improve what we're seeing there.
"It looks like this global economy is going to remain very weak and today's ANZ job numbers reflect what's happening in Australia at the moment."
ANZ Banking Group employment data out on Monday points to a rising jobless rate in 2009, and economists are tipping a recession within coming months.
The Australian share market opened nearly two percent lower following a tumble on Wall Street after the US unemployment rate shot to a 16-year high.
Locally, BHP Billiton lost 87 cents, or 2.74 percent, to $30.83, while rival Rio Tinto shed $2.63, or 5.99 percent, to $41.30.
Rio Tinto, the world's second largest iron ore producer, has postponed a $3 billion expansion to its Corumba iron ore mine in Brazil.
The banking sector was weaker, with National Australia Bank losing 36 cents to $20.64, Commonwealth Bank falling 48 cents to $28.32, ANZ dropping 12 cents to $15.08 and Westpac shedding six cents to $16.44.
Babcock & Brown shares are in a trading halt as the troubled investment bank awaits word from its bankers on a business plan to escape insolvency.
The investment bank's shares last traded at 32.5 cents.
Mirrabooka Investments stock was steady at $1.40 despite reporting a 36 per cent decline in first-half net profit as the financial crisis dented the value of the assets the fund manager holds.
Automotive brakes maker Pacifica Group gained five cents to 30 cents despite noting it may report an impairment as a result of the troubled state of the automotive industry.
The retailers were mixed, with Woolworths gaining seven cents to $26.30, Harvey Norman adding one cent to $2.45, Wesfarmers losing 94 cents to $18.01 and David Jones falling six cents to $3.
The media sector was weaker, with Consolidated Media Holdings giving up three cents to $2.05, News Corp dipping 32 cents to $13.50, its non-voting shares retreating 23 cents to $12.51 and Fairfax shedding 7.5 cents to $1.62.
The energy sector was weaker, with Woodside Petroleum losing 28 cents to $35.70, Santos dropping 38 cents to $14.09 and Oil Search falling eight cents to $4.65.
The spot price of gold was lower at 1630 AEDT, trading at US$850.05 an ounce, down US$6.20 on Friday's local close of US$856.25 an ounce.
The gold miners were mixed, with Newcrest adding 73 cents to $31.38, Newmont dropping six cents to $5.26 and Lihir losing three cents to $2.72.
Junior explorer Admiralty Resources was the most traded stock on the market by volume, with 87 million shares changing hands, collectively worth $3.4 million.
Admiralty shares put on 0.2 cents to four cents.
Preliminary market turnover reached 981 million, worth a total value of $1.9 billion, with 361 stocks moving up, 507 moving down and 246 unchanged.
- AAP