Australian shares close sharply lower on Chinese/US equity corrections.

(From AFX Europe (Focus))

SYDNEY (XFN-ASIA) - Share prices closed sharply lower following the overnight rout on global equity markets which was sparked by a 8.8 pct slump on the Shanghai index on Tuesday, dealers said.

The Chinese sell-off occurred after rumors that China's authorities would crack down on illegal speculation and introduce a capital gains tax.

European stocks markets closed sharply lower overnight, the Dow Jones industrial index ended down 3.29 pct while other Asian equity markets caught up to the Chinese sell-off today.

Dealers said few Australian companies avoided the negative sentiment today, including the index leading …