The benchmark S&P200 index closed at the lows of the day on Monday, down 32.6 points, or 0.46 per cent, to 7,115.6.
That is the lowest level for the bourse since June 8 and comes on the heels of last week's 2.6 per cent sell-off, its worst week in nearly a year.
The broader All Ordinaries on Monday dropped 30.1 points, or 0.41 per cent, to 7,335.9.
JP Morgan analyst Krupa Patel said markets were in risk-off mode following a lack of forceful stimulus from China after a raft of bleak economic news there, and ahead of US Federal Reserve chairman Jerome Powell's address on Friday at the Jackson Hole summit of central bankers in Wyoming.
CMC Markets APAC and Canada analyst Tina Teng said markets would be on tenterhooks this week in advance of Powell's speech, as hawkish rhetoric could crash risk assets further.
While there are no big market-moving announcements on the domestic radar screen this week, BHP, Wesfarmers, Woodside, Woolworths, Coles and Qantas are all set to report on how they did last financial year.
Iress, A2 Milk, Reliance Worldwide, Adairs and Objective Corp were all down sharply after reporting earnings on Monday, while Breville, Bluescope Steel, Charter Hall, Ampol and Audinate all gained ground.
Iress plunged 35.5 per cent to a more than decade low of $6.44 after the financial software company suspended its dividend following a first-half loss of $139.8 million.
"Our half-year results represent Iress mid-transformation," explained CEO Marcus Price, adding that the benefits of trimming costs and simplifying the business would be felt later.
A2 Milk dropped 13.6 per cent to a one-year low of $4.27 after the New Zealand dairy company announced a jump in net profit but forecast tougher goings this financial year.
"The China IMF (infant milk formula) market has become increasingly challenged as a result of lower birth rates and increased competitive intensity," said CEO and managing director David Bortolussi.
Bluescope Steel rose 3.5 per cent to $21.27 as the steelmaker reported a 64 per cent drop in net profit, to $1.01 billion, and announced plans to spend $1.15 billion to upgrade its Port Kembla steelworks in southern NSW.
Elsewhere in the heavyweight material sector, BHP dropped 0.4 per cent to $43.52 and Rio Tinto fell 0.8 per cent to $104.82, while Fortescue Metals rose 0.4 per cent to $20.42.
In the financial sector, Westpac fell 3.1 per cent to $20.62 as Australia's oldest bank announced ongoing mortgage competition had cut into its net interest margin in the third quarter.
Westpac said it had made an unaudited net profit of $1.8 billion, with expenses up around five per cent from a year ago.
Among the other big banks, CBA fell 0.6 per cent to $98.45, ANZ dropped 1.0 per cent to $24.24 and NAB dipped 0.4 per cent to $27.57.
IAG finished 0.9 per cent lower at $5.79 as the insurance giant reported its net profit for 2022/23 rose 140 per cent to $832 million.
Premier Investments climbed 12.2 per cent to a three-month high of $24.41 as the retailer announced it was starting a strategic review to consider the prospects of breaking up Solomon Lew's company.
Breville Group rose 9.0 per cent to an over one-year high of $25.23 on a 4.2 per cent jump in net profit, while Adairs dropped 15.5 per cent to a nearly two-month low of $1.415 after reporting lower margins and higher costs in 2022/23.
"In a trend seen by virtually all retailers, sales slowed towards the end of the year as rising interest rates and broad cost of living pressures saw households tighten their budgets," Adairs managing director and CEO Mark Ronan said.
Audinate rose 10.7 per cent to $11.40 as the professional audiovisual equipment company reported record revenue growth and profit.
The Australian dollar meanwhile was struggling to stay over 64 US cents, buying 64.03 US cents, from 64.12 US cents at Friday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Monday down 32.6 points, or 0.46 per cent, at 7,115.5.
* The All Ordinaries dropped 30.1 points, or 0.41 per cent, to 7,335.9.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.03 US cents, from 64.12 US cents at Friday's ASX close
* 93.11 Japanese yen, from 94.06 Japanese yen
* 58.86 Euro cents, from 58.93 Euro cents
* 50.29 British pence, from 50.36 pence
* 108.25 NZ cents, from 108.00 NZ cents.
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