The local sharemarket has had its worst single session in six weeks, but regained some lost ground.
The benchmark top-50 index ended the day down 2.2 percent, having fallen as much as 4.5 percent in early trading after opening 3 percent down.
Local investors were spooked by a plunge of more than 5 percent in US stocks overnight on fears of a resurgence of Covid-19 cases and the likelihood of a slower than expected economic recovery.
Brokers have been warning markets were looking overheated and were due for a correction, as investors got too carried away on expectations of recovery from the pandemic.