Australian shares closed lower on Monday as an Omicron-led surge in COVID-19 infections pushed the country's tally past one million cases, with a drop in local technology stocks ahead of a US inflation report weighing further on markets.

The S&P/ASX 200 ended 0.1% lower at 7,447.1, giving up some of Friday's 1.3% gain.

Total infections in Australia continued to surge, with over half a million cases reported over the last week, straining the country's healthcare infrastructure and supply chains.

Technology stocks fell nearly 1%, tracking a drop on the tech-focused Nasdaq on Friday. Worries of sooner-than-expected policy tightening by the Federal Reserve have increased after a recent US jobs missed expectations, with inflation data in focus to gauge the central bank's trajectory.

Sector heavyweight Afterpay retreated 2.3%, while other tech firms Xero and Wisetech Global fell 2.8% and 2.7%, respectively.

Bucking the trend, energy stocks added 1.1% and rose for a second consecutive session, as oil prices remained in an upward momentum, with political instability in Kazakhstan leading to concerns over oil supply.

Woodside Petroleum rose 2.3%, followed by Santos , up 0.7%.

Meanwhile, the former chief executive of fibre cement maker James Hardie, who was fired for breaching the company's code of conduct, said he was considering legal action against the firm. Its shares ended 1.3% lower.

In New Zealand, the S&P/NZX 50 fell 0.6% in its third session of losses to 12,892.94, hurt by an 3.5% drop in media firm SKY Network Television Ltd to a near four-week low.