* Financials fall 0.7% but up 1.8% for the week
* Miners post biggest weekly decline since May
* Energy stocks record 4% weekly gain, its best since Feb
(Updates to close)
By Niyati Shetty
July 26 (Reuters) - Australian shares declined on Friday, weighed down by financials and tech stocks, after the European Central Bank held off cutting interest rates raising some concerns about next week's U.S. Federal Reserve rate decision.
The S&P/ASX 200 index .AXJO closed down 0.4% or 24.60 points to 6,793.40, but the benchmark rose 0.6% on Thursday and gained 1.4% this week.
Markets were jittery after the ECB unexpectedly held rates steady as central bank President Mario Draghi cautioned about pulling the trigger too quickly on policy easing. MKTS/GLOB
Financials .AXFJ lost 0.7% with the biggest lenders Commonwealth Bank of Australia CBA.AX and Westpac Banking Corp WBC.AX falling 0.5% and 1%, respectively. The sub-index, however, gained 1.8% for the week.
The focus is now squarely on what the Fed decides at its July 30-31 policy committee meeting, with expectations running high for a cut in rates.
However, strong jobs data released on Thursday showed sustained strength in the U.S. labour market which has left investors concerned the Fed may choose to wait to cut another day. are getting nervous that the Fed could disappoint next week," Edward Moya, senior market analyst at OANDA said in a note.
Tech stocks .AXIJ fell 0.9%, in step with their Wall Street peers that dropped after weak results from chipmakers and Facebook (NASDAQ:FB) that flagged weaker revenue growth next year. .N
Limiting the benchmark's losses, mining stocks .AXMM gained as iron ore prices firmed on a strong demand outlook, but posted its biggest weekly decline since May. IRONORE/
Mining behemoths BHP Group BHP.AX rose 0.6% and Rio Tinto (LON:RIO) RIO.AX gained 2.1%.
Energy firms .AXEJ added 4% this week, its best since mid-February, after rallying for six straight sessions as tensions in the Middle East supported oil prices. O/R
New Zealand's benchmark S&P/NZX 50 index .NZ50 closed down 0.83% or 90.67 points to 10,807.61.
Auckland International Airport AIA.NZ slipped 2.2% and a2 Milk Company ATM.NZ dropped 1.4%.