While the Australian share market recovered slightly by noon, it was still distinctly lower, with massive losses in various sectors.
At 1200 AEST, the benchmark S&P/ASX200 index lost 75.6 points, or 1.74 per cent, at 4,270.1 points, while the broader All Ordinaries index decreased by 76.7 points, or 1.75 per cent, at 4,293.8 points.
On the Sydney Futures Exchange, the September futures contract was 81 points lower at 4,257, on volume of 16,875 contracts.
Wall Street and European markets have undergone heavy reduction overnight due mainly to the drop inUS consumer confidence for the first time in four months.
This also added to the negative effect of a downward correction in China's economic activity.
While the numbers from China were lower than expected, that economy remained strong, according to Bell Financial Group senior adviser Chris Kimber.
"We had the double whammy with the sell off in the US last night, slightly slower Chinese growth numbers than we expected but we still think those numbers are very good," he said.
Growth in China may slack from 13 or 14 per cent rate to nine per cent, which is still "pretty fantastic", Mr Kimber said.
"Markets are still very sensitive. The last day of the financial year is giving it a bit of a belting.
"With the mining stocks, we're still hoping that the government and the new prime minister will come up with a workable tax proposal in the short term which hopefully will provide better sentiment for that sector, as well."
Mr Kimber expects the bourse would close firmer than its noon record.
Rio Tinto shares lost $2.16, or 3.16 per cent, at $66.26, and BHP Billiton went down 88 cents, or 2.31 per cent, to $37.22.
Of the major banks, National Australia Bank decreased 31 cents at $23.09, Westpac slumped 31 cents at $20.94, ANZ dropped 45 cents to $21.42 while Commonwealth slid $1.04 to $48.34.
Woodside Petroleum lost 84 cents at $41.73. Oil Search had fallen six cents to $5.53 while Santos went down nine cents to $12.50.
At 1218 AEST, the spot price of gold in Sydney was $US1,241.70, an increase of US$4.65 from yesterday's $US1,237.05 per fine ounce.