The top 200 has given up almost three per cent of its value in a fortnight and is sitting at a six-week low heading into the weekend.
An afternoon tumble in financials stocks wiped out an early lift for shares, with three of the big four banks in the red by the close, and investment giant Macquarie Group weighing heavily with a 5.7 per cent drop after an earnings miss.
Other rate-sensitive and highly leveraged sectors were under pressure, with IT stocks falling 2.3 per cent, consumer discretionaries down 1.1 per cent and industrials fading 0.9 per cent.
Raw materials slipped lower, despite a long-awaited rebound for rare earths, as large cap miners fell in step with iron ore futures, which dipped below $US103 a tonne for the first time since September.
Softer iron ore demand
Weaker prices came amid softening demand from China's steelmakers, and with fresh concerns for the world's second-largest economy as exports unexpectedly fell in October after months of front-loading by US importers trying to get ahead of President Trump's tariffs.
Gold miners were mixed as spot prices edged tentatively above $US4,000 an ounce, with Evolution and Northern Star fading more than 0.5 per cent, while Newmont, Perseus and Ramelius notched gains.
Energy stocks finished 0.5 per cent higher, tracking with a modest lift in oil prices overnight, with steady gains for fossil fuel producers but uranium plays still fall out of favour with investors.
Looking ahead, Coles, Goodman Group, Downer, TPG Telecom and Domino's will hold annual meeting's next week, while ANZ, Orica, Aristocrat, Zero, GrainCorp and Infratil are among companies providing earnings updates.
The Australian dollar was buying 64.80 US cents, down from 65.07 US cents on Thursday at 5pm.
