The Australian sharemarket closed more than one per cent lower as weak GDP figures prompted investors to dump banking stocks.
At the close, the benchmark S&P/ASX200 index was down 65.6 points, or 1.34 per cent, at 4,835.2, while the broader All Ordinaries index was 61.5 points, or 1.26 per cent, weaker at 4,825.2.
The June share price index futures contract was 61 points weaker at 4,837 points with 31,756 contracts traded.
National turnover was 1.3 billion securities worth $4.0 billion.
The local market posted its ninth 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," Mr McCarthy said.
"We could see further short-term moves down."
He 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 on Wednesday showed Australia's Gross Domestic Product (GDP) 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.
Prime Minister Shinzo 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 was down 71 cents at $27.20, CBA had fallen 90 cents to $66.25, NAB was 66 cents weaker at $28.95 and Westpac was off 76 cents at $28.19.
The two large supermarket owners were also being punished, with Wesfarmers 33 cents lower at $38.58 and Woolworths down 23 cents at $32.32.
Among the major miners, BHP had fallen 47 cents to $33.79, while Rio had slipped 77 cents to $54.36.
Gold stocks were also weaker as the price of the precious commodity continues to languish.
Gold miner Newcrest fell 80 cents to $14.35.
In other news, Billabong shares continued to slide following Tuesday'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 1.5 cents, or 6.5 per cent, at 21.5 cents.
