SYDNEY/WELLINTO: Australian shares closed lower on Thursday, dragged down by banks and Woolworths Group, as the country's most populous state grappled with a double-digit rise in Covid-19 cases.

The ASX 200 index slipped 0.3% to 7,275.3, heading for its first weekly drop in five.

The 'Big Four' banks fell about 1% each, in line with broader financial stocks.

Woolworths Group tumbled 11.2% in its biggest fall ever, after Endeavour Group made its market debut after being spun-off by the supermarket chain.

Energy stocks fell 1.2%.

Miners gained 0.6%, with Rio Tinto, BHP Group and Fortescue Metals Group rising about 1% each.

Across the Tasman sea, New Zealand's benchmark NZX 50 index closed flat at 12,586.89.