At 10:30 (AEST), the benchmark ASX 200 index was down 52.80 points or 0.77 percent at 6,765.20, while the broader All Ordinaries index was down 55.70 points or 0.79 percent at 7,012.20.
U.S. share markets wobbled on Wednesday as tech stocks fell most in response to a rise in bond yields.
"Stronger European and U.S. data overnight sent bond yields soaring again. Bond markets see the connection between economic improvement and higher interest rates as inextricable, despite central bank reassurances," CMC Markets chief market strategist Michael McCarthy said.
"The moves created a risk off atmosphere across asset classes, and high flying technology shares were hit hard."
The Dow Jones closed lower by 0.4 percent. The S&P 500 was down 1.3 percent while the Nasdaq fell 2.7 percent.
On the local bourse, health care, materials and consumer staples were leading broad-based falls.
In the financial space, the big banks lifted with Commonwealth Bank up (0.01 percent), National Australia Bank up (0.90 percent), Westpac Bank up (0.25 percent) and ANZ up (1.16 percent).
Mining stocks slumped with BHP down (2.77 percent), Rio Tinto down (5.28 percent), Fortescue Metals down (2.15 percent), and gold miner Newcrest down (2.64 percent).
The country's oil and gas producers were mixed with Oil Search up (0.95 percent), Santos up (0.81 percent) and Woodside Petroleum down (0.73 percent).
Australia's largest supermarkets slumped with Coles down (1.28 percent), and Woolworths down (3.27 percent).
Meanwhile telecommunications giant Telstra dropped (0.80 percent), the national carrier Qantas slumped (0.99 percent) and biomedical firm CSL plummeted (4.71 percent).
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