At the market close the benchmark S&P/ASX 200 index was down 30.50 points, or 0.58 percent, at 5,256.30, while a broader All Ordinaries index lost 22.30 points, or 0.42 percent, at 5,301.30.
"The solid start to the holiday-shortened week was short lived, with the ASX 200 fading from the morning's gains in excess of 2 percent," Commsec market analyst Steven Daghlian said.
"Some early positive signs that lockdowns are working to slow the pace of infection and mortality rates seemed to initially encourage markets."
Information technology were the best performing stocks throughout the day and closed over 2.5 percent higher, following a solid lead by a tech-heavy Nasdaq.
Resources also closed higher, around 0.5 percent, however healthcare, financials and utilities were all weighing heavily on the local market and offsetting gains elsewhere.
In the financial space, Australia's big banks sank with the Commonwealth Bank down (1.30 percent), ANZ down (0.91 percent), National Australia Bank down (1.58 percent) and Westpac Bank down (1.84 percent).
Mining stocks were mixed with Rio Tinto up (0.35 percent), BHP down (0.47 percent), Fortescue Metals up (2.23 percent), and goldminer Newcrest up (2.75 percent).
The country's oil and gas producers were mostly higher with Oil Search unchanged, Santos up (3.23 percent) and Woodside Petroleum up (1.72 percent).
Australia's largest supermarkets slumped with Coles down (1.79 percent), and Woolworths down (2.91 percent).
Meanwhile telecommunications giant Telstra dropped (2.19 percent), the national carrier Qantas took off (4.43 percent) and biomedical firm CSL dropped (2.43 percent).
Latest comments