At 10:30 (AEST), the benchmark S&P/ASX 200 index was buying 30.90 points or 0.58 percent at 5,322.10, while the broader All Ordinaries index was down 34.00 points or 0.63 percent at 5,380.70.
"Market sentiment is souring this morning as evidence of economic damage caused by virus containment measures mounts," CMC Markets chief market strategist Michael McCarthy said.
"In U.S. trading, crude oil prices plunged, and the futures price fell below zero for the first time ever as the industry runs out of storage capacity."
Energy, industrials and tech stocks sank the most while consumer staples and utilities managed modest rallies.
Locally, airline Virgin Australia entered voluntary administration after being unable to secure necessary backing to endure the effects COVID-19 has had on air travel.
In the financial space, Australia's big banks were mixed with the Commonwealth Bank up (0.17 percent), ANZ down (0.37 percent), Westpac Bank up (0.06 percent) and National Australia Bank down (0.38 percent).
Mining stocks also varied with Rio Tinto down (1.15 percent), BHP down (1.56 percent), goldminer Newcrest up (2.22 percent) and Fortescue Metals up (1.67 percent).
The country's oil and gas producers sank with Oil Search down (2.26 percent), Santos down (3.39 percent) and Woodside Petroleum down (2.38 percent).
Australia's largest supermarkets lifted with Coles up (0.12 percent), and Woolworths up (0.30 percent).
Meanwhile telecommunications giant Telstra jumped (0.16 percent), the national carrier Qantas lifted (3.06 percent) and biomedical firm CSL edged higher (0.05 percent).
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