The benchmark S&P/ASX200 index on Friday finished down 44.8 points, or 0.63 per cent, to 7107.7, while the broader All Ordinaries dropped 47.4 points, or 0.65 per cent, to 7287.8.
It was the third straight week of losses for the ASX200 which has dropped 41 points, or 0.6 per cent, since last Friday's close. For the month it has fallen 2.4 per cent, and 4.5 per cent since the start of the year, with just three trading sessions left.
Overnight the S&P500 index gave back most of the previous day's gains after better than expected third-quarter US gross domestic product (GDP) data raised apprehension that the Federal Reserve would continue its aggressive rate-hiking campaign into the new year.
"The data was stronger across the board, and if there's anything the Fed does not want to see these days, it's better than expected data," Paul Hickey of Bespoke Investment Group told CNN.
Every sector of the ASX closed lower on Friday except utilities. Tech was the biggest loser, falling 1.6 per cent as Xero dropped 1.9 per cent.
The heavyweight mining sector trimmed steeper earlier losses to close down 0.5 per cent, with BHP dropping 0.2 per cent to $46.16, Fortescue Metals falling 0.6 per cent to $20.57 and South32 down 0.7 per cent to $4.07.
Rio Tinto was the outlier, climbing 0.5 per cent to $115.43.
Lithium producers Core Lithium, Allkem, IGO and Pilbara all finished at three-month lows after dropping between 0.9 and 2.0 per cent.
The big banks were mostly lower but ANZ managed to finish up 0.3 per cent to $24.07.
CBA retreated 0.8 per cent to $104.82, NAB dropped 0.5 per cent to $30.38 and Westpac edged 0.2 per cent lower at $23.50.
Retail Food Group gained 10.1 per cent to 7.6c after the Donut King and Gloria Jean's brand owner agreed to pay $10 million to settle a lawsuit brought by the Australian Competition and Consumer Commission on behalf Michel's Patisserie franchisee owners.
The Star Entertainment Group finished down 4.8 per cent to $1.885 after the gaming company gained some clarity on proposed casino tax hikes in NSW.
Warrego Energy fell 4.6 per cent to 31c as Strike Energy and Gina Rinehart's Hancock Energy continued to joust for the Perth Basin gas explorer.
Motio surged 2.12 per cent to 4c after reaching an agreement to buy oOh!media's cafe and venue advertising network for $2.35 million, with vendor financing provided by oOh!media. OML shares finished down 1.5 per cent to $1.30.
Earlypay plunged 37.5 per cent to 20c after the business financing provider withdrew its guidance following its biggest borrower entering administration earlier this month. RevRoof and its related entity, Painted Steel Technologies, owe Earlypay $29m, and there's now uncertainty about how much the lender may recover.
The Australian dollar meanwhile was buying 66.80 US cents, from 67.55 US cents at Wednesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Friday dropped 44.8 points, or 0.63 per cent, to 7107.7.
* The broader All Ordinaries fell 47.4 points, or 0.65 per cent, to 7287.8.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.85 US cents, from 67.55 US cents at Thursday's ASX close
* 88.68 Japanese yen, from 89.05 Japanese yen
* 63.05 Euro cents, from 63.45 Euro cents
* 55.57 British pence, from 55.71 British pence
* 106.48 NZ cents, from 106.87 NZ cents.
16°C