Financial stocks dragged the local market down.
The ASX 200 fell below 4900 points before recovering. At the close, the index was at 4,937.60, down 26.48 points or 0.53%.
On Wall Street, financial and energy stocks led a rout overnight. The S&P 500 index closed down 1.2%.
On the ASX, the four major banks led the pack down. The ANZ was down 1.5% to $22.28 and Westpac 1.18% to $28.520.
The Bank of Queensland, which announced an 11% lift in profits yesterday, lost 4.2% to $10.96.
The miners followed after crude oil prices fell. BHP was down 1.28% to $16.18.