(Reuters) - Australian shares closed at their lowest level in over a week on Friday, with mining stocks leading declines after U.S. President Donald Trump said he will slap a 10% tariff on $300 billion of Chinese imports.
The S&P/ASX 200 index <.AXJO> ended down 0.3% or 20.3 points at 6,768.6, after losing 0.4% in the previous session. The benchmark fell 0.4% for the week.
Trump's announcement on Thursday extended tariffs to nearly all of the Chinese goods the United States imports, ratcheting up a protracted tussle that has weighed on global growth and battered equities.
Mining stocks <.AXMM>, whose top export destination is China, dropped to an over six-week trough and accounted for majority of the losses on the benchmark.
World's biggest miner BHP Group Ltd <BHP.AX> fell 3.7% to its lowest since June 11 and was the biggest drag on the main index.
Meanwhile, Rio Tinto slumped to a near-three month trough despite posting its highest margins in a decade and delivering a record interim payout.
Iron ore miners were also hurt by a near 5% fall in Chinese futures contracts for the steel-making commodity. [IRONORE/]
However, the elevated trade tensions boosted the appeal of gold, driving a rally in miners of the precious metal.
Resolute Mining Ltd <RSG.AX> ended at its highest since Feb. 24, 2017 and was the top gainer on the benchmark.
Investors also bought heavily into shares of rare earths miner Lynas Corporation <LYC.AX> which had its best day in almost two months.
Elsewhere, the country's biggest bulk grain handler GrainCorp Ltd <GNC.AX> closed at its lowest in one month after flagging its first annual loss in a decade due to a prolonged drought in eastern Australia.
In New Zealand, the benchmark S&P/NZX 50 index <.NZ50> ticked up 3.05 points to finish at 10,863.87.
The index posted a weekly gain of 0.5%, extending a winning streak to a eight consecutive week.
The country's central bank is all but certain to cut rates to record lows next week, and keep the door open for more easing, a Reuters poll showed, as global policymakers unfurl a fresh burst of monetary stimulus to fight slowing growth in the face of intensifying trade disputes.
Contact Energy Ltd <CEN.NZ> gained 1.8% and was among the top boosts to the benchmark.
(Reporting by Aditya Soni in Bengaluru; Editing by Kim Coghill)
