Australian shares closed lower on Friday as weakness in mining and technology stocks outweighed gains in the energy sector, with renewed Middle East tensions lifting expectations of further U.S. interest rate hikes and dampening sentiment toward risk assets.
The S&P/ASX 200 Index fell 44.0 points, or 0.5%, to 8,796.7, with four of the 11 sectors finishing in negative territory.
For the week, the benchmark index slipped 0.1%.
The Materials sector led the decline, with heavyweight miners under pressure. BHP dropped 2.7%, while Rio Tinto lost 2.4%. Fortescue Metals finished little changed.
Gold miners also retreated despite bullion prices stabilising late in the session. Northern Star Resources fell 4.1%, Evolution Mining lost 4.3%, and Newmont declined 3.6%.
Regis Resources slumped 8.4% despite raising its FY27 production guidance and reporting stronger output from its Garden Well and Rosemont underground operations, as investors locked in gains following the miner's recent rally.
The Financial sector was mixed. Commonwealth Bank fell 0.8%, Westpac eased 0.2%, and ANZ lost 0.4%, while National Australia Bank edged 0.2% higher.
Energy stocks outperformed as higher oil prices boosted the sector. Santos gained 1.9%, Woodside Energy advanced 3.3% and Viva Energy rose 1.3%.
Among individual stocks, Coles climbed 2.9% after ending discussions with private equity firm TPG Capital regarding a potential acquisition of Greencross Pet Wellness Company.
Buy now, pay later provider Zip Co dropped 5.1% after announcing it would exit New Zealand, saying the market no longer aligned with its strategic priorities as it sharpened its focus on Australia and the United States.
On the bond markets, Australian government bond yields moved lower, with the 10-year yield easing 0.2% to 4.902% and the two-year yield falling 0.4% to 4.514%.
