The benchmark S&P/ASX200 index finished Friday basically flat, gaining 2.1 points, or 0.03 per cent, to 7,148.1, while the broader All Ordinaries rose 1.6 points, or 0.02 per cent, to 7,366.0.
For the week, the ASX200 finished down 2.6 per cent, its worst since a 3.9 per cent loss 50 weeks ago.
AMP chief economist Shane Oliver said share markets globally fell over the past week on the back of concerns about more central bank rate hikes, ongoing upwards pressure on bond yields and worries about poor growth and real estate issues in China.
"Shares look to be entering a recession," he wrote.
Tim Waterer, chief market analyst at KCM Trade, said there were dire macro indicators in China with a huge property developer on the brink of insolvency.
In the US, increased federal government borrowing and concerns about further rate hikes have led to a surge in bond yields, which are not showing any signs of letting up at this stage.
"Between an apparently hawkish Fed on one hand and Chinese economic woes on the other, financial markets have been bereft of good news this week which explains the struggles of risk-assets," Mr Waterer said.
Cryptocurrencies were also struggling, with Bitcoin falling over seven per cent to a two-month low of $A41,500 on Australian exchanges.
In a bit of consolation for investors on Friday a number of companies rallied after reporting earnings results.
Magellan Financial Group leapt 13.3 per cent to a nearly one-year high of $10.42 after the asset manager announced a special dividend and a new chairman.
Magellan has endured turmoil and outflows after the departure of star stockpicker Hamish Douglass in early 2022 but CEO David George said during 2022/23 the company had laid a foundation that would allow it to return to growth.
Packaging company Amcor added 5.6 per cent to $14.96 and warehouse owner Goodman Group climbed 7.3 per cent to $22.40, a day after both reported earnings.
Abacus Group rose 10.2 per cent to $1.19 after the commercial property trust raised its payout following a 13 per cent rise in property income.
The Big Four banks were lower, with CBA down 0.6 per cent to $99.05, NAB 0.5 per cent to $27.68 and ANZ and Westpac both dipping 0.4 per cent, to $24.49 and $21.27.
In the heavyweight mining sector, BHP rose 1.4 per cent to $43.69, Fortescue climbed 1.0 per cent to $20.33 and Rio Tinto added 0.9 per cent to $105.69.
The Australian dollar was buying 64.12 US cents, from 64.00 US cents from Thursday's close.
Looking forward, there are no big macro events on the domestic calendar next week, although some of Australia's biggest companies will be reporting earnings, including BHP, Wesfarmers, Woodside and Woolworths.
In the US, the Jackson Hole summit of central bankers will be held toward the end of the week in Wyoming, where attention will be focused on Federal Reserve chairman Jerome Powell's address.
ON THE ASX:
* The S&P/ASX200 index finished Friday up 2.1 points, or 0.03 per cent, at 7,148.1.
* The All Ordinaries gained 1.6 points, or 0.02 per cent, to 7,366.0
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.12 US cents, from 64.64 US cents at Wednesday's ASX close
* 94.06 Japanese yen, from 94.61 Japanese yen
* 58.93 Euro cents, from 58.82 Euro cents
* 50.36 British pence, from 50.26 pence
* 108.00 NZ cents, from 107.97 NZ cents.
10°C