The Australian share market has closed sharply lower for a third straight day following a sell-off in the 90 minutes of trading as market sentiment quickly reverses.

The S&P/ASX200 benchmark index finished Monday on the lows of the day, down 128 points, or 2.19 per cent, at a two-week low of 5,719.8 points, while the All Ordinaries index fell 129.9 points, or 2.18 per cent, at 5,830.

The Australian dollar meanwhile was buying 67.88 US cents, down from 68.61 US cents on Friday.