Sydney, Australia, Mar 9 (EFE).- The Australian stock exchange had its worst day since the global financial crisis, losing an estimated $140 billion on Monday due to the coronavirus epidemic and an oil price war.

The benchmark ASX200 share index market closed with a drop of 7.9 percent, tumbling 455.6 points down to 5,760.6, the Australian Securities Exchange reported on its Twitter account.

The losses on the stock market are estimated at AU$140 billion ($91.6 billion), while the Australian dollar was trading as low as US$0.63, the lowest since the global financial crisis (GFC) 11 years ago.

"Australian shares have slumped to their worst day since the global financial crisis with futures markets indicating a market bloodbath awaits the US and Europe," the Australian Financial Review warned on its website.

The stock exchange reaction is blamed on the global COVID-19 crisis, which has claimed the lives of three people in Australia and infected about 80, as well as the failure of OPEC and its allies to agree last Friday in Vienna on how much oil production to cut amid the epidemic.

Saudi Arabia and other OPEC members reportedly sought to cut production, but Russia did not support the move. On Sunday Saudi announced a drop in oil prices, which reverberated around the world, and economists have predicted that Australia's petrol prices will soon reach $1 per liter.

"Market volatility is not uncommon at times like this," Australia's treasurer Josh Frydenberg told reporters on Monday. "And I note that some announcements by the Russians and the Saudis in relation to oil overnight, and we've seen a steep drop in the oil price in recent weeks."

"So there are a number of factors at play when it comes to the equity markets, but our financial system remains strong, our economy remains strong. This is a very different situation to what we saw through the GFC, which was essentially a problem with the banking and the financial system and issues of liquidity," he added.

"We haven't seen those same problems in relation to this health crisis. What we have seen is a supply and demand side constraints, and that's where our [stimulus] package will be focused," Frydenberg said.

Experts have predicted the country is on track for its first recession since 1991. EFE

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