Australian shares closed lower on Friday as global risk sentiment was hit after tensions between the United States and China heightened over the imposition of a new law in Hong Kong.

The S&P/ASX 200 index ended 0.96% lower at 5,497. For the week, it gained 1.7%.

Among sectors and stocks, the sub-index for miners fell 0.8% but gained more than 6% for the week, its best weekly performance in over three years, as iron ore prices gained. Global miners Rio Tinto and BHP Group ended 2% and 0.6% lower, respectively.

Financial stocks declined, with the "big four" banks falling in the range of 0.6% and 1.2%. Its sub-index fell for the second consecutive week.

Healthcare stocks fell to a more than three-week low, with heavyweight CSL Ltd dropping 2.4%.

New Zealand's benchmark S&P/NZX 50 index fell to end the week 0.6% lower. Fisher & Paykel Healthcare Corp closed 2.7% lower.