The benchmark S&P/ASX200 index lost half a per cent today, slightly narrowing afternoon losses as the Nikkei was sold off. Source: Bloomberg
The Australian stock market has closed lower after yesterday's sell-off as investors watch steady selling in Japan and wait for more news from local half-year earnings season.
At the 1615 AEDT official market close, the benchmark S&P/ASX200 index fell 0.53% to 5,070.3 points, while the broader All Ordinaries index fell 0.5% to 5,088.7 points.
IG chief market strategist Chris Weston said Asia has been in reflection mode today, with selling gathering momentum in Japan.
"In Australia the first-half earnings are trickling in and this probably explains the lack of conviction today from traders and investors to put on any new positions today until better clarity resumes," Mr Weston said.
"The ASX looks as though it wants to test the 2012 uptrend support around 5050 and there seems a huge missing catalyst for the market right now to drive stocks higher.
"The catalyst has to come from earnings guidance."