Reserve Bank optimism about the economic reopening of lockdown states has helped ASX investors recover some but not all of their losses.
Central bank governor Philip Lowe appeared to cheer investors after he said the economy would be at pre-Delta variant levels by the second half of next year.
The market improved after the monetary policy comments, while the Aussie dollar slipped within the 72 US cents range.
Dr Lowe said research showed many companies were trying to hire workers before the easing of virus rules.
The RBA left the cash rate at a record low 0.1 per cent.
Bond buying remains at $4 billion a week until a February review.
CommSec chief economist Craig James said the RBA was not fretting like other central banks over rising prices from importing and exporting difficulties.
The RBA described the impact of these problems on inflation as limited.
Higher rates are not expected until 2024.
Lockdown effects in the ACT, NSW and Victoria showed in declining job advertising figures for September.
The ANZ job ads series fell 2.8 per cent and marked a third consecutive decline.
The negative economic data compounded a poor lead from US markets.
US President Joe Biden said he cannot guarantee the government will not breach its $US28.4 trillion ($A38.9 trillion) debt limit unless Republicans join Democrats in voting to raise it.
The big US technology stocks were widely sold which led to similar losses on the domestic market.
Technology shares were the worst performers on the ASX. Afterpay and Appen shed more than five per cent each.
Energy shares outperformed all categories. They climbed after OPEC said it would stick to an existing pact for a gradual increase in oil output.
Woodside Petroleum gained almost four per cent. Oil Search, Origin and Santos all improved by more than two per cent.
The benchmark S&P/ASX200 index closed lower by 30.1 points, or 0.41 per cent, to 7248.4.
The All Ordinaries closed down 40.3 points, or 0.53 per cent, to 7536.5.
Qantas is close to choosing which plane and engine suppliers will provide its next domestic fleet.
Airline boss Alan Joyce is in Boston this week talking to manufacturers about the needs of the carrier for the next two decades.
Qantas payments would start next financial year and be spread over 10 years.
Shares closed down 1.2 per cent to $5.74.
The big miners all struggled. Fortescue had the greatest losses of the big three and shed 1.25 per cent.
The banks fared a little better. The Commonwealth Bank was best and improved by 0.32 per cent to $105.50. ANZ had the biggest slump and fell 0.71 per cent to $27.83.
Evolution Mining will sell its Mt Carlton gold mine in Queensland for about $90 million.
Evolution will retain a stake in the mine as it has a stake of almost 20 per cent in buyer Navarre Minerals.
Navarre is funding the purchase by raising $40 million through a share sale.
Navarre shares were paused from trading.
Evolution shares were up 2.49 per cent to $3.71.
Data centre provider Infratil is taking a 40 per cent stake in a fledgling UK data centre business.
Infratil is paying up to 130 million pounds ($A243.5 million) for the stake in Kao Data of London.
Shares were up 2.57 per cent to $7.98.
The Australian dollar was buying 72.57 US cents at 1725 AEDT, lower from 72.74 US cents at Monday’s close.
ON THE ASX
* The benchmark S&P/ASX200 index closed lower by 30.1 points, or 0.41 per cent, to 7248.4 on Tuesday.
* The All Ordinaries closed down 40.3 points, or 0.53 per cent, to 7536.5.
* At 1725 AEDT, the SPI200 futures index was down eight points, or 0.11 per cent, at 7209 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 72.57 US cents, from 72.74 cents on Monday
* 80.67 Japanese yen, from 80.62 yen
* 62.58 Euro cents, from 62.63 cents
* 53.39 British pence, from 53.62 pence
* 104.66 NZ cents, from 104.71 cents.
