At the market close, the benchmark S&P/ASX 200 index was down 170.20 points, or 3.44 percent, at 4,953.20, while the broader All Ordinaries index was down, 189.40 points, or 3.79 percent at 4,809.40.
AMP chief economist Shane Oliver said unless more evidence showed the virus were under control, it was too early to say that share markets and the Australian dollar have bottomed.
Seven out of ten sectors were lower. Energy, tech and consumer discretionary stocks led losses, all down over 3 percent.
The only 3 sectors which lifted were health care, consumer staples and utilities, with the third leading gains at 3.10 percent.
Meanwhile national carrier, Qantas' shares plummeted by over 15 percent following the company's decision to halt all international flights amid COVID-19 outbreak.
In the financial space, Australia's big banks sank with the Commonwealth Bank down (4.69 percent), ANZ down (9.75 percent), National Australia Bank down (8.99 percent) and Westpac Bank down (8.62 percent).
Mining stocks were mixed with Rio Tinto up (0.76 percent), BHP up (0.74 percent), and Fortescue Metals up (5.80 percent), however goldminer Newcrest was down (8.28 percent)
The country's oil and gas producers plummeted with Oil Search down (16.80 percent), Santos down (7.66 percent), Woodside Petroleum down (3.48 percent).
Australia's largest supermarkets lifted with Coles up (1.65 percent), and Woolworths up (0.76 percent).
Meanwhile telecommunications giant Telstra was up (2.83 percent), the national carrier Qantas plunged (15.42 percent) and biomedical firm CSL gained (4.61 percent).
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