The local stock market has given back the previous session's gains with interest, after stock-specific shocks and mining sector sell-off weighed on sentiment.
The S&P/ASX200 fell 43.1 points, or 0.48 percent, to 9,012.5, while the broader All Ordinaries fell 56.1 points, or 0.6 percent, to 9,295.8.
The rally in the banking sector could not pull the market out of the crisis, as health care and IT stocks were dragged down by segment giants CSL and WiseTech, which fell more than 15 per cent each.
CSL's shares fell after it missed earnings guidance, while WiseTech's executives fell after they were raided by Australian Federal Police amid allegations of unfair trading.
The materials sector also took a hit as investors booked profits on gold stocks and critical mineral miners, with an impending US-China trade deal stoking safe-haven appetite and turning the recent rare earths rally into reality.
“The pressure we're seeing today has really hit metals and put serious pressure on mining and obviously the pressure on the gold price is part of that,” MooMoo market strategist Michael McCarthy told AAP.
Spot gold is trading at $3,967 ($A6,050) an ounce, down about 9.5 percent from its all-time high hit a week ago.
Large cap BHP, Fortescue and Rio Tinto fared better than the rest of the segment, falling about 0.5 per cent each.
“It was the frothy part of the market, the part that runs so hard, the gold miners, the rare earths and some of the experts who are really getting respect today,” Mr McCarthy said.
“I suspect that materials are going to remain under pressure for the rest of the week, especially gold, which looks like a bursting bubble.”
Energy stocks were also under pressure, with oil prices falling 1.7 percent as signs of a global supply glut offset any concerns over US sanctions on Russian crude.
Woodside and Santos each declined at least 1.7 percent, while investors disappointed coal producers and uranium miners.
A rally by the big four banks helped lift the financial sector 1.3 percent, providing limited strength against widespread losses, as Commonwealth Bank hit an 11-week high above $175 a share.
Consumer discretionary shares also performed well, with a gain of 1.7 per cent and Bunnings owner Wesfarmers leading the way.
In other company news, Domino's Pizza shares rose 7.2 percent before a trading halt amid rumors of a private equity buyout.
The Australian dollar is buying 65.56 US cents, up from 65.38 US cents at 5pm on Monday.
Wednesday's quarterly inflation data is expected to show rising price rises, which, along with dovish comments from RBA Governor Michelle Bullock overnight, have weakened the chances of an interest rate cut next week.
“For the first time in six months, I would argue that the market has taken notice and realized that it depends on the data, not on what we want, which is a rate cut,” Mr McCarthy said.
“The market reaction today reflects a sense of alarm rather than any change in direction on the part of Governor Bullock.”
On ASX:
* The S&P/ASX200 fell 43.1 points, or 0.48 percent, to 9,012.5.
* The broader All Ordinaries fell 56.1 points, or 0.60 percent, to 9,295.8.
Currency Snapshot:
One Australian dollar trades for:
* 65.56 US cents, from 65.38 US cents on Monday
* 99.61 JPY, from 100.12 JPY
* 56.21 euro cents, from 56.23 euro cents
* 49.07 British pence, from 49.08 British pence
* 113.47 NZ cents, from 113.48 NZ cents
