Australian shares closed more than 1 per cent lower as investors were swayed by ongoing negative sentiment.
At the close, the benchmark S&P/ASX200 index was down 54.0 points, or 1.12 per cent, at 4,781.2 points, while the broader All Ordinaries index was 53.4 points, or 1.11 per cent, lower at 4,771.8.
The June share price index futures contract was 50 points lower at 4,781 points with 31,830 contracts traded.
National turnover was 1.4 billion securities worth $1.3 billion.
It was the 10th fall in 13 sessions.
IG market analyst Stan Shamu said the deterioration in confidence had continued due to volatility in Japan and ongoing quantitative easing in the US.
"Investor confidence has been rattled," Mr Shamu said.
"There's been more blanket selling. There's been nothing that's really sticking out as a factor for why people are selling, apart from a lack of confidence and locking in profits and portfolio adjustments."
It came after the release of a weaker-than-expected trade surplus locally and low private sector job numbers in the US.
The Australian dollar plunged to below 95 US cents to two-and-a-half year lows, after US stocks fell overnight.
Financial stocks were lower, with Commonwealth Bank down 14 cents to $66.11, Westpac 48 cents lower at $28.71, and ANZ down 34 cents at $26.86. National Australia Bank fell 20 cents to $28.75.
The big miners were weaker, with Rio Tinto down 29 cents at $54.07 and BHP Billiton two cents lower at $33.77.
Meanwhile, retailer Target has hinted jobs will be cut at its head office in Geelong.
Shares in parent company Wesfarmers fell 61 cents to $37.97.
Fairfax Media shares fell one cent to 59 cents after it announced a massive restructure would deliver $60 million more in savings than originally expected.
Australian shares took their weak lead from Wall Street, where the Dow Jones Industrial Average lost 1.43 per cent, closing below 15,000 for the first time in a month.
