The Australian share market has given up all of its strong early gains and then some, falling by more than 1.5 per cent for a second day.

The S&P/ASX200 benchmark index finished Friday down 86.8 points, or 1.68 per cent, after being up as much as 92.5 points, or 1.8 per cent, in early trade.

The All Ordinaries index closed down 81.8 points, or 1.58 per cent, at 5,106.9.

The Australian dollar is buying 60.69 US cents, down from 61.80 US cents as the market closed on Thursday.