Australia shares post third weekly loss as Evergrande debt crisis weighs

Australia shares ended lower on Friday to mark a third weekly decline as property developer Evergrande's debt crisis continued to capture attention worldwide and spark concerns of a fallout in China's financial system and other markets.

The S&P/ASX 200 index fell 0.37% to close trade at 7,342.6 points. In the previous session, the benchmark closed 1% higher at a seven-week peak.

"With China Evergrande's bond interest payment deadline inching closer, markets have been evaluating what would happen if the property developer fails to settle the interest within a month of the slated payment dates," Kunal Sawhney, chief executive officer of Kalkine Group said.

Investors are concerned a slowdown in China may have an impact on commodities. Australian miners, who are dependent on Chinese demand for raw materials, fell 1.36%, with the country's big mining triumvirate - BHP Group, Rio Tinto and Fortescue Metals skidding between 0.3% and 2.6%.

Gold miners led the losses on the main bourse after dropping 3.35%, tracking lower bullion prices overnight amid an uptick in Treasury yields.

Gold miner Kingsgate Consolidated Ltd fell 7.2% while Ramelius Resources Ltd lost 6.1%.

In contrast, energy stocks rose 1.41% tracking an uptick in oil prices as investors focused on tighter supplies amid strong appetite for riskier assets such as crude.

Heavyweight Washington H Soul Pattinson and Company was the top gainer in the sub-index, advancing 3.8%, followed by natural gas major Santos Ltd, gaining up to 4.9%.

Major banks advanced 0.66% with a rise in Australian bond yields as higher rates lead to better margins. Among the 'Big Four' banks, the country's biggest lender Commonwealth Bank climbed 0.9%.

New Zealand's benchmark S&P/NZX 50 index fell 0.35% to finish the session at 13,259.6 points.