The benchmark S&P/ASX200 (^AXJO) has finished 2.19 per cent lower, as investors eye a spate of virus infections in Beijing.
The broader All Ordinaries index (^AORD) also closed 2.18 per cent lower.
What happened this morning?
The benchmark S&P/ASX200 (^AXJO) fell 0.23 per cent at open, as coronavirus concerns dulled investor optimism.
The broader All Ordinaries index (^AORD) also dropped 0.28 per cent at 10.05 AEST, despite US technology and financial stocks pushing Wall Street higher on Friday.
Most sectors were trading lower and consumer staples took the biggest hit, down 1.09 per cent.
Data on people arriving from overseas in April will be published on Monday, and may give some indication of how the airline industry is tracking amid the coronavirus pandemic.
Economist Shane Oliver warned the market could be in for a mixed week, amid concerns of a second wave of coronavirus.
"Second wave concerns remain which means it will probably be a wobbly week for shares," Oliver told AAP on Sunday.
The warning follows two schools in Melbourne and Sydney forcibly shutting down, after students tested positive to the virus.
One Australian dollar was buying 68.25 US cents at 10am AEST, down from 68.61 US cents on Friday.
What happened over the weekend?
US stocks finished higher as investors looked to take advantage of sharp losses a day earlier, but all three major indexes suffered their biggest weekly percentage declines since March.
The Dow Jones Industrial Average rose 477.37 points, or 1.9 per cent, to 25,605.54, the S&P 500 gained 39.21 points, or 1.31 per cent, to 3,041.31 and the Nasdaq Composite added 96.08 points, or 1.01 per cent, to 9,588.81.
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