(Updates to close)
SYDNEY, Sept 4 (Reuters) - Australian shares closed modestly higher on Friday after a see-saw session that saw gains in the miners offset losses in banks, but the market still posted one of its worst weeks this year.
The S&P/ASX 200 index .AXJO edged up 0.25 percent, or 12.8 points, to 5,040.6.
For the week, it closed 4.2 percent lower - its biggest weekly fall since June - as fear of a China-led global economic slowdown roiled financial markets.
Helping underpin the market were gains in the major miners. BHP Billiton (LONDON:BLT) BHP.AX and Rio Tinto (LONDON:RIO) RIO.AX both closed higher.
New Zealand's benchmark NZX 50 index .NZ50 eased 0.4 percent, or 22.8 points, to finish at 5,546.9.
(Editing by Kim Coghill)