The local exchange fell 2.4% on Thursday, its biggest decline in three weeks. The S&P/ASX index dropped 125.13 points, with banks and mines seeing the largest decline.
But Thursday's drop hasn't erased an overall increase of about 1% for the week so far, following a 4.2% drop last week. And the ASX is set to open higher, with the Dow, S&P 500 and Nasdaq all posting gains overnight in the U.S.
The ASX posted its biggest drop in three weeks, but is set to open higher on the back of solid US stock performance.