Australian shares gave up early gains and turned lower as sentiment was dented by the latest exchange of trade threats between the United States and China, a major market for Australia's crucial resources exports. Financial stocks were the biggest drag on the S&P/ASX 200 index, which edged 6.1 points lower to 6,234.8 at the close of trade to a week's low. Commonwealth Bank of Australia extended its losses to be down 1.2 percent at a one-month low.
Among the remaining 'Big Four' banks, Westpac Banking and Australia and New Zealand Banking fell 1 percent and 0.9 percent, respectively.
Miners were hit by weaker commodity prices as trade tensions fuelled uncertainty over demand.
BHP dropped 1.6 percent to a near two-week low as the weaker commodity prices and a strike threat at its Escondida copper mine in Chile deterred investors.
The workers union has given the global miner till August 6 to come up with a better pay offer.
Export reliant sectors and the energy firms supported earlier gains in the market, sustained by weakness in the Australian dollar and overnight gains in oil prices.
Biotherapeutics firm CSL led the way, rising 1 percent.
New Zealand's benchmark S&P/NZX 50 index ended the week in positive territory, up 0.2 percent to 8,864.52, but not enough to halt a 1.5 percent weekly loss.
Synlait's stock rose 2.8 percent, while a2 Milk reversed earlier gains to end 0.2 percent lower.