Australian stock market plunges

The Australian stock market fell sharply today as concerns over the US economy and Europe’s debt woes battered stocks across the world.

The Australian benchmark S&P/ASX-200 index closed 171.1 points, or 4 %, lower at 4,105.4.

Stocks in the US and Europe tumbled yesterday as investors worried that US economic growth was slowing and concern mounted over Italy and Spain’s debt burdens.

In the US, the Dow Jones industrial average suffered its steepest point decline since December 1, 2008.

Australia’s Treasurer Wayne Swan sought to assure investors that Australia’s economy remains robust.

“Australians should never forget that our economic credentials are one of the strongest in the developed world and that Australia has a proven track record of dealing with global economic concern,” he told reporters.

“We are in the right part of the world at the right time. Growth in Asia-Pacific remains strong.”

Australia weathered the global financial crisis better than most developed nations, helped by a AUS$42bn (€31bn) stimulus package and strong demand for the country’s raw materials.