The Australian share market closed lower on Friday, as speculation of more interest rate rises in China dampened investor sentiment to risk. The benchmark S&P/ASX200 index was down 11.0 points, or 0.24 per cent, at 4,629.2, while the broader All Ordinaries index had fallen 5.1 points, or 0.11 per cent, at 4,717.7. On the ASX 24, the December share price index futures contract was six points lower at 4,649 points, with 29,349 contracts traded. For every 13 stocks falling in the S&P/ASX50, 10 rose. Measures by Chinese authorities to dampen inflation and economic growth in the Asian nation are considered as possible brakes on the global economy and hence demand for commodities. The blue chip Dow Jones Industrial Average rose 1.57 per cent overnight, while the S&P 500 index gained 1.54 per cent. The major miners closed weaker on Friday. BHP Billiton closed down 19 cents at $43.61 and Rio Tinto shed 10 cents to $84.30.

Fortescue Metals closed 0.45 per cent lower after the miner said it would need to raise an extra $US4 billion of debt to fund its iron ore production expansion to 155 million tonnes per annum (Mtpa). The iron miner closed down three cents at $6.70. The four major banks all ended weaker on Friday. Commonwealth Bank was the worst performer, losing 71 cents, or 1.43 per cent, to $48.81, while ANZ fell nine cents to $22.49, NAB lost 30 cents to $24.07 and Westpac was down 18 cents to $21.62.

In news on Friday, shares in New Zealand coal miner Pike River Coal have been placed in a trading halt as up to 30 miners are missing at its operation on the country's South Island after an explosion. The blast occurred at the Pike River Coal mine near Greymouth on Friday. Pike River Coal's was down 10 cents, or 14.08 per cent, at 61 cents when its shares were placed in a trading halt.

Telstra closed up six cents, or 2.34 per cent, at $2.62 after the telco's biggest single shareholder, Australia's Future Fund, opposed all resolutions put to the telecommunications company's annual general meeting. Shares in grain trader AWB traded for the last time on Friday, after the scheme of arrangement by which the company is sold to Canada's Agrium Inc takes effect. AWB closed down one cent at $1.495. Spotless Group closed up four cents, or 1.88 per cent at $2.17 after it announced a new funding deal. The maintenance and cleaning services firm said it will issue $US160 million of senior notes in the US debt market to repay bank loans and extend the maturity of its debt.

The spot price of gold in Sydney was $1,354.20 per troy ounce, up 69 cents from Thursday's local close of $1,353.51. Newcrest Mining closed down 23 cens cents at $40.14. The most traded stock by volume was Intec, with 76.43 million shares changing hands for $3.92 million. Intec ended 1.6 cents lower, or 29.09 per cent, at 3.9 cents, after the minerals processor announced a share placement. Total market turnover was 2.55 billion shares changing hands for $4.898 billion, with 597 up, 489 down and 415 unchanged.

The terms of trade boom now fueling growth in Australia could be the largest external shock to the commodity rich economy ever recorded and a high Australian dollar is needed to contain inflation pressures flowing from it, Treasury Secretary Ken Henry said Friday. The Australian dollar has risen by around 20% since midyear, recently touching its highest levels since being floated in 1983. The rise comes as soaring demand for iron ore and coal ramp export receipts higher. It is currently trading around $0.9850.