Aussie stock market loses more than 2%

The Australian share market has fallen more than two per cent in afternoon trading, after pushing lower all day, as the fallout from China continues to ripple through global equities markets.

By 1523 AEDT, the benchmark S&P/ASX 200 index was down 2.04 per cent while the broader all ordinaries was down 2.13 per cent.

It was the worst decline in the local market since last Tuesday when it suffered its biggest one-day fall in almost five and a half years.

The S&P/ASX200 was down 117.8 points to 5668.2 as the all ords fell 123.1 points to 5652.1.

The market had opened lower today, after falls in US markets on Friday.

US stocks closed lower on Friday, with the Dow Jones industrial average dropping 120.24 points, or 0.98 per cent, to 12,114.10.

The Standard & Poor's 500 Index fell 1.14 per cent and the Nasdaq Composite Index slid 1.51 per cent, to 2,368.00.

Last Tuesday, a nine per cent decline on China's benchmark stock index on Tuesday, led to waves of selling in markets around the world, including Australia, which fell 2.7 per cent.

ABN Amro Morgans Ipswich manager Tony Russell said today's weakness followed on from the shakeout in China.

Bell Potter senior adviser Stuart Smith said the market's momentum was definitely to the downside.

"I give it some chance this week of a pick-up but you don't stand in the way of a speeding train," Mr Smith said.