The local share market has fallen to a four-week low on renewed fears of a global recession amid tightening monetary policy.
The benchmark S&P/ASX200 index finished Friday down 56.1 points, or 0.78 per cent, to 7148.7, its lowest close since November 21.
For the week, the index lost 64.5 points, or 0.89 per cent, its second straight losing week after gaining five out of the past six weeks before that.
The broader All Ordinaries on Friday dropped 53.8 points, or 0.73 per cent, to 7336.5
"There was a lot of risk-off sentiment from overnight, I guess the US markets pretty much drove what happened today," said CMC Markets analyst Azeem Sheriff.
"It all started from the FOMC yesterday," Mr Sheriff said, using an acronym for the Federal Open Market Commitee, which on Thursday raised the US federal funds to the highest level in 15 years.
Then overnight no fewer than six more central banks followed suit - the Bank of England and the European Central Bank, as well as central banks of Switzerland, Mexico, Denmark and Norway.
"I think that continues to add to that recessionary flavour, 'higher for longer', and I think that's what the markets are reacting to," Mr Sheriff said.
"Especially that commentary coming from all the central bank leaders suggesting that yes, inflation is still relatively high for their economies, and rates have to be higher for a fair period of time," he said.
The Federal Reserve on Thursday talked about taking the "terminal", or peak interest rate, past five per cent, and the leaders of the European Central Bank and the Bank of England were similarly hawkish on Friday.
"I think it was more the period, how long they have to leave it there as restrictive for inflation to meaningfully come down - that's what's going to be the big issue," Mr Sheriff said.
"And I think that's what's going to drive a global recession, and of course the earnings recession, which we'll probably see early next year."
Eight of the ASX's 11 official sectors lost ground on Friday, with property trusts flat and small gains for energy and industrials.
Utilities and tech were the worst performers, with both losing a bit more than two per cent. Xero dropped 3.0 per cent and Afterpay owner Block dropped 6.3 per cent.
The heavyweight financial sector finished down 0.9 per cent, with losses for all the big retail banks.
NAB dropped 1.3 per cent to $30.40 as chief executive Ross McEwan warned shareholders at its annual general meeting that it was "clear that 2023 will be a year of slower growth than 2022, and challenges will continue to emerge and evolve".
ANZ dropped 1.2 per cent to $23.62, Westpac fell 0.9 per cent to $23.30, and CBA retreated 0.8 per cent to $105.98
In healthcare, blood products giant CSL dropped 1.9 per cent to a one-month low of $291.68.
In the mining sector, Rio Tinto climbed 0.8 per cent to $114.55 but most of the other major miners were in the red.
BHP dipped 0.6 per cent to $45.67, Fortescue Metals fell 1.4 per cent to $20.13 and South32 dropped 2.2 per cent to $4.10.
Goldminers struggled as the price of the precious metal dropped to a one-week low of $US1,781 an ounce on expectations of higher US interest rates.
Evolution fell 2.5 per cent, Northern Star dropped 1.8 per cent and Newcrest dipped 1.0 per cent.
Norwest Energy rose 31.1 per cent to a decade-high of 5.9c after Mineral Resources made an $403 million all-scrip takeover bid for its Perth Basin joint venture partner. Mineral Resources fell 1.0 per cent to $81.22.
Coalminers New Hope Corp and Yancoal were both up 2.8 per cent to two-month highs, of $6.24 and $6.23, respectively.
Aurizon gained 4.0 per cent to $3.87 as the country's largest rail freight operator struck a deal to sell off its east coast coal haulage business for $425 million.
Meanwhile, the Aussie slid to a nine-day low against its surging US counterpart. It was buying 67.13 US cents, from 68.28 US cents at Thursday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Friday dropped 56.1 points, or 0.78 per cent, to 7148.7.
* The broader All Ordinaries dropped 53.8 points, or 0.73 per cent, to 7336.5.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.13 US cents, from 68.28 US cents at Thursday's ASX close
* 92.09 Japanese yen, from 92.58 Japanese yen
* 62.97 Euro cents, from 64.08 Euro cents
* 54.92 British pence, from 55.08 British pence
* 105.41 NZ cents, from 106.09 NZ cents.
