Australian shares finished almost one per cent lower due to widespread concerns about global growth.
At the close on Friday, the benchmark S&P/ASX200 index was down 39.4 points, or 0.96 per cent, at 4,048.2, while the broader All Ordinaries index was down 39.9 points, or 0.97 per cent, at 4,093.8.
The September share price index futures contract was 51 points lower at 4,008, with 25,567 contracts traded.
CMC Markets chief market analyst Michael McCarthy said local shares dipped following a series of weak manufacturing readings from Germany, France and China.
"It was really all about concerns for growth," Mr McCarthy said.
"That's why we saw oil markets hit so hard and that's weighed on shares around the globe including us."
Energy stocks were punished and Australia's biggest miners, BHP Billiton and Rio Tinto, led the move south.
US stocks slid sharply, with the Dow Jones Industrial Average sinking two per cent, as disappointing economic data from China and Europe followed the Federal Reserve's slashing its growth forecast for the United States.
At the close, the Dow Jones Industrial Average was down 250.82 points, or 1.96 per cent, at 12,573.57.
European stocks slid in anxious trade before Spain announced the cost of bailing out its banks and amid a slew of data that suggested a slowdown in the global economy.
London's benchmark FTSE 100 index closed down 0.99 per cent at 5,566.36 points on Thursday.
The mining giants closed lower while the four major banks were mixed.
BHP Billiton was down 68 cents at $31.52, Rio Tinto was 88 cents lower at $56.02, but Fortescue Metals was 12 cents higher at $4.91.
That share price bounce for Fortescue came after it recorded a half year profit of just over $1 billion and says it will cut costs as it battles with technical issues at its sole mine in Western Australia.
ANZ was down 30 cents at $21.28, National Australia Bank was three cents higher at $23.17, Westpac dropped 23 cents to $20.73 and Commonwealth Bank fell nine cents to $51.69.
National turnover was 1.7 billion shares worth $3.6 billion, with 288 up, 717 down and 380 unchanged.
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