US equity markets have given up early gains as investors turned cautious ahead of the August jobs market report, which could weigh heavily the Federal Reserve's upcoming interest rate decision.
The Australian market has opened higher following a positive lead from Wall Street and figures showing steady US economic growth, but there were early signs of continued volatility.
US shares have put on a solid rally with investors piling back into blue chips and especially tech stocks as a Federal Reserve report depicted steady US economic growth.
Nervous investors have sold down US stocks after surviving last week's turbulence, amid continued worries over the potential broader impact of China's slowdown.
The Australian share market has closed 1 per cent lower as investors fretted over the possibility the US Federal Reserve could soon raise interest rates.
US stocks have posted big gains for the second straight session as strong American economic data extended a global rally that began with a surge in beaten-down Chinese equities.
The Australian share market is almost 1.5 per cent higher, following Wall Street's three per cent gains, a sign traders are shrugging off recent volatility.