Australian shares fell 0.9 percent on Friday, with the crisis in Iraq encouraging investors to book profits from the previous session's steep gains while a surge in gold propped up producers such as Newcrest Mining. The S&P/ASX 200 index fell 48 points to 5,419.5 at the close of trade. The benchmark jumped 1.6 percent on Thursday, its biggest one-day percentage gain since December 19. For the week, the market added 0.3 percent to snap a three-week slide.
Top Australian goldminer Newcrest led gainers with a rise of 4 percent, while Australia's second biggest accommodation provider Mantra Group closed two cents below its offer price in its first day of trade.
New Zealand's benchmark NZX 50 index fell 0.9 percent or 47 points to finish the session at 5,145 points, with retailer The Warehouse pulling it down after a profit warning. The financial sector was the biggest drag on the market. Commonwealth Bank of Australia, the biggest bank by market capitalisation, lost 0.5 percent, and Westpac Banking Corp declined 0.4 percent.
For the week, the market is on track to add 0.7 percent.
A handful of defensives also pulled back, led by top telecommunications provider Telstra Corporation Ltd falling 1 percent.
"I think a bit of moderation today is not a terrible thing," said Scott Schuberg, CEO at Rivkin Securities. "There is a lot of support at the 5,400 level so long as we stay elevated above that we can look for a resumption of the uptrend."
Helping to steady the market somewhat, gold miners rallied after bullion surged over 3 percent for its best day in eight months overnight. The Fed's lack of commitment to raise interest rates and continued tensions in the Middle East unleashed a wave of short covering in the yellow metal. Australia's top gold miner Newcrest Mining Ltd jumped 4.5 percent to mid-April highs of A$10.87, while Regis Resources Ltd rose 4 percent.
Westfield Group and Westfield Retail Trust were in a trading halt as the world's biggest retail property group was cleared to split its business after shareholders voted in favour of the move.
Ten Network Holdings Ltd tumbled 8.5 percent to A$0.25, its lowest price since early April, extending its fall after the embattled network issued a profit warning the previous day.
Corporate software developer Diligent Board Member Services fell 3.7 percent to NZ$4.40, retreating from a NZ$4.70 hit in early trade, as first-quarter results showed a slowdown in revenue growth. Travel software developer Serko priced its upcoming share offer at NZ$1.10 per share, before it lists on the stock exchange next week.
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