ASX tumbles 2% to lowest level since mid-June

The Australian sharemarket fell on Thursday, dropping to its lowest level since mid-June as rising US bond yields and a late sell-off on Wall Street weighed on sentiment and capped a downbeat September quarter.

The S&P/ASX 200 Index fell 174.9 points, or 2%, to 8,614.4, with all 11 sectors finishing in the red.

Energy stocks led the declines, with Santos falling 2.7%, Woodside Energy losing 3.1% and Spottiswoode Property Trust declining 5.7%.

Ampol fell 1.3% after announcing the acquisition of public electric vehicle battery charging service Evie Networks for $225 million.

Consumer staples also came under pressure, with GrainCorp falling 2.8%, Woolworths declining 2.9%, Coles losing 2.6% and Elders dropping 2.3%.

Among individual movers, Liontown fell 15.1%, leading losses on the index after Macquarie and Bell Potter cut their price targets for the lithium miner following board approval for an expansion of its Kathleen Valley project.

Lynas Rare Earths declined 8.6% after agreeing to acquire ASX-listed miner Meteoric Resources in a deal valued at $968 million.

Meanwhile, Data#3 jumped 13.7% after guiding for a 40% increase in first-half net profit before tax.

On the bond markets, the Australian 10-year yield rose 0.5% to 5.406%, while the two-year yield remained unchanged at 4.989%.