THE share market had fallen further by noon, with another round of weaker than expected economic data from China causing concern for investors.
At 12pm (AEST), the benchmark S&P/ASX200 index was down 81 points, or 1.88 per cent, at 4220.5 points, while the broader All Ordinaries index was down 79.8 points, or 1.85 per cent, at 4245.
On the Sydney Futures Exchange, the September futures contract was 55 points lower at 4207 points, on a volume of 21,992 contracts.
The market dropped at 11am (AEST) as data was released from China showing its manufacturing activity continued to grow in June, but at a slower rate than in May.
China's official purchasing managers' index (PMI) fell to 52.1 in June from 53.9 in May, the China Federation of Logistics and Purchasing (CFLP) said.
The reading was weaker than median analyst forecasts of 53.1 points.
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"The manufacturing data is just not as robust as we would like, so it has taken a bit of the wind out of the market," CMC Markets analyst David Taylor said.
"The market's looking for very decent economic news that pins people's hopes back on a reasonably solid global economic recovery, and we haven't had that for quite some time."
The drop in shares followed a weaker opening in response to falls on Wall Street overnight.
A disappointing June employment report from a US payroll company had traders lower their expectations for key US employment data due out tomorrow.
Local data released today had less of an impact on trade, Mr Taylor said.
Building approvals fell 6.6 per cent in May, compared to median market forecasts for approvals to have been flat in the month.
Retail trade at current prices rose 0.2 per cent in May, in line with median market forecasts.
Losses on the market were in all sectors.
In resources, Rio Tinto was down $2.12, or 3.18 per cent, at $64.54 and BHP Billiton was down 82 cents, or 2.18 per cent, at $36.83.
Fortescue Metals had lost 18 cents, or 4.37 per cent, to $3.94.
Fortescue has said it planned to appeal a decision by the Australian Competition Tribunal not to force BHP Billiton and Rio Tinto to open up their main rail lines in Western Australia to third party miners.
Among the banks, National Australia Bank was down 43 cents at $22.85, Westpac dropped 46 cents to $20.77, ANZ lost 41 cents to $21.20 and Commonwealth was 95 cents lower at $47.69.
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