The Australian market recovered from its early lows but ended the day down just over 1%.
A global market sell-off and caution before a US Fed meeting pushed the market down on opening more than 1.50%.
AT 4pm Australian Eastern Time, the ASX200 had picked up but was still down 1.07 per cent or 56.03 points to 5,184.90.
Overnight emerging market equities hit a five-month low, and on Wall Street the S&P500 finished down 0.4%, with the Dow down 0.26% and the Nasdaq falling 1.06%.
Concerns over economic data out of China, as well as fears the Fed will taper its bond-buying program even further put pressure on emerging markets.