Australian and New Zealand stocks ended the first week of 2024 in negative territory, losing ground gained over the last two months as investors globally reassessed their expectations of interest rate cuts for this year.

On Friday, the S&P/ASX 200 index ticked lower to finish at 7,489.10. For the week, it fell 1.34% in its worst week since mid-October, snapping five straight weekly gains.

The benchmark on Tuesday nearly touched its record high of 7,632.80, but failed to breach the level as near-term resistance from rate-cut bets at a time of local inflationary pressures put off investors.

"Multiple attempts to overcome this level of resistance since August 2021 have failed to find a breakout, keeping the index on a broad ranging pattern," said Yeap Jun Rong, a market strategist at IG.

"Any eventual success in overcoming this level could provide a bullish cue, potentially paving the way towards the 7,800 level next."

Meanwhile, local investors were awaiting retail sales and inflation data due next week for clues on the central bank's monetary policy stance at its meeting in early February.

Globally, U.S. payrolls data due later in the day was in focus.

Among sectors, rate-sensitive financials closed 0.9% higher with top lender Commonwealth Bank gaining 1.4%.

Heavyweight miners fell 1.1% on weak iron ore futures. BHP Group, Rio Tinto and Fortescue lost 1%, 1.6% and 2.6%, respectively.

Energy stocks dropped 0.6%, even as oil prices edged higher after the Federal Reserve's comments on inflation.

Gold stocks snapped their four-day losing streak to finish 0.7% higher. However, for the week, the index lost 4.3% in its worst week since late September.

In New Zealand, the benchmark S&P/NZX 50 index closed marginally lower at 11,748.48. For the week, it ended 0.2% lower, snapping a nine-week rally. (Reporting by Sherin Sunny in Bengaluru; Editing by Subhranshu Sahu)