(Updates to close) Australian shares ended lower on Friday,...

(Updates to close)

Australian shares ended lower on Friday, logging its worst week in three, weighed by gloomy China trade data and on bets that the U.S Federal Reserve would deliver another rate hike to tame sticky inflation.

The S&P/ASX 200 index (xjo) ended 0.2% lower at 7,156.7, The benchmark lost 1.7% in the week, posting its biggest weekly loss since Aug 18.

Weekly jobless claims in the United States fell to it lowest level since February. But investors are worried that this could prompt the Fed to stick with a tight monetary policy.

"We are seeing markets actively readjusting their rate expectations towards the end of 2023, the odds for a November hike (in the U.S.) had increased considerably and is likely to pressure the RBA as well," said Glenn Yin, head of research and analysis at AETOS Capital Group.

Adding to the bleak sentiment, exports and imports in China, country's top trade partner, extended declines in August, implying that its post-pandemic recovery continues to falter.

Miners .AXMM led losses, falling 1.2% to post its worst week since Aug 18. Iron ore behemoths BHP (BHP) and Rio Tinto (RIO) lost 1.2% and 1.7%, respectively.

Gold stocks .AXGD , however, rose 0.6% with sector majors Evolution Mining (EVN) and Newcrest Mining (NCM) falling over 0.5% each.

Meanwhile, workers at Chevron's CVX.N liquefied natural gas (LNG) projects in Australia are set to start strike action after mediation talks between unions and the company ended without a deal.

In New Zealand, the benchmark S&P/NZX 50 index (nz50) closed 0.72% lower at 11,344.11.