Australian shares closed the week lower, tracking Asian markets, as investors await the US non-farm payrolls report later during the day that will shape the expectations for interest rate cuts.

The S&P/ASX 200 Index fell 0.4% or 35.5 points to close at 8,289.7.

On Thursday, Fed officials signaled that the central bank will hold the current interest rates of 4.35% for a longer period and that ongoing inflation risks warranted a cautious, gradual pace of rate cuts.

Analysts expect unemployment to hold at 4.2%, adding that "anything upbeat" may support the US Federal Reserve's case for fewer rate cuts within the year, Reuters had earlier reported.

In domestic news, Australia's household spending growth eased to 0.4% in November 2024 from 0.9% in the prior month, data from the Australian Bureau of Statistics showed.

Despite missing analysts' consensus, growth in Australia's retail sales is not as weak as it seems and is unlikely to impact the central bank's February decision, ANZ Research said.

In company news, Brookfield is mulling a takeover bid for Insignia Financial (ASX:IFL), The Australian reported. However, the asset manager declined to comment on the matter.

In a separate bourse filing, Insignia Financial said it has yet to receive a proposal from Brookfield. Its shares rose 2% on market close.

The Australian Securities and Investments Commission (ASIC) alleges that Regional Express Holdings (ASX:REX) knew the financial health of the company was deteriorating after making a profit projection months earlier, The Australian reported based on court records.

Lastly, The Star Entertainment Group (ASX:SGR) agreed to sell a luxury yacht to Platinum Capital Partners after allegedly reneging on the deal, settling a legal dispute involving the already struggling casino operator, the Australian Financial Review reported. Shares plunged 15% at market close, earlier hitting a 52-week low.