Australia's share market has crashed to its second-steepest fall of the year, not helped by higher than expected inflation figures.
The market dropped early on Tuesday then moved lower after Australia's annual inflation rate rose to 3.5 per cent, based on December quarter data.
Higher inflation will put pressure on the Reserve Bank to raise rates, with board members meeting next week.
Investors are already preparing for higher global rates prior to a US Federal Reserve meeting this week.
The benchmark S&P/ASX200 index closed down 177.9 points, or 2.49 per cent, to 6961.6 points.
The All Ordinaries index closed lower by 193.4 points, or 2.6 per cent, to 7248.1 points.
The Australian dollar was buying 71.39 US cents at 1621 AEDT, lower from 71.77 US cents at Monday's close.