Australian shares edged lower on Friday, dragged down by losses in technology and energy stocks, as cautious investors stayed on the sidelines eyeing developments about the Russia-Ukraine crisis, while gains in miners partially offset some losses.

The S&P/ASX 200 index was down about 0.3% at 7,480 by 1200 GMT.

The benchmark fell 0.2% on Thursday.

Investors remained cautious as geopolitical risks loomed, potentially leading to an economic recession, with added inflationary effects and the possibility of more aggressive rate hikes from the US Federal Reserve.

Tech, financial firms lift Australian stocks for seventh day

Leading declines, technology stocks dropped as much as 1.4%, tracking peers on the US Nasdaq Composite.

Xero Ltd and ASX-listed shares of Block Inc lost around 0.4% and 2.8% each.

Oil stocks dropped as much as 0.5%, set for their sharpest weekly decline since late November, as global crude prices slumped after the United States said it would release its emergency oil reserves due to geopolitical risks arising from Russia and Ukraine.

Sector heavyweights Woodside Petroleum and Santos Ltd fell 0.1% and 0.3%, respectively.

Financial stocks edged down 0.7%, followed by healthcare stocks dropping 0.4%, with CSL Ltd down about 0.3%.

Miners, however, bucked the overall trend and rose 1.3%, maintaining a record high, with iron ore prices marking their best quarter since 2020, as hopes of additional policy support from China raised sentiment for the asset class.