* RBA flags potential near-term headwinds
* Energy index set for biggest weekly fall in nearly 6 months
* Mining stocks on track to post third straight weekly loss
* NZ's Kathmandu up nearly 15% on strong H1 earnings forecast
Feb 7 (Reuters) - Australian shares declined on Friday as investors booked profits after three sessions of gains amid persisting concerns around the global economic impact of the deadly coronavirus in China.
The S&P/ASX 200 index .AXJO slipped 0.6% to 7,010.70 by 0130 GMT, tracking declines in its regional peers.
"We have come off the back of three straight days of gains, and very strong gain yesterday after China tariffs announcement... There is not enough good news to continue to lift the market at the same pace we saw earlier," said Steven Daghlian, market analyst at CommSec.
Weighing on the sentiment further, the Reserve Bank of Australia (RBA) slashed forecasts for economic growth in the near term to reflect the drag from bushfires and drought, and the coronavirus. bank governor Philip Lowe said the coronavirus outbreak represented a new source of uncertainty, adding that the risks to Australian economy would be "large". death toll from the outbreak crossed 600 as of Thursday, further deepening worries about its economic impact in China, Australia's largest trading partner. across Australia's east coast have been battling drought conditions for more than three years, while bushfires wreaked havoc for over four months, putting the country's economy at peril.
The financials sub-index .AXFJ slipped as much as 0.8%, with all the "Big Four" banks trading in the red.
Commonwealth Bank of Australia CBA.AX edged down 0.3%, while Westpac Banking Corp WBC.AX lost up to 1.2%.
The energy index .AXEJ led the declines, on track to post its worst weekly fall in nearly six months.
Heavyweights Woodside Petroleum Ltd WPL.AX and Oil Search Ltd OSH.AX fell 1.8% and 1.4%, respectively.
The mining sector .AXMM slipped up to 1%, on track for its third consecutive weekly loss.
BHP Group Ltd BHP.AX and Fortescue Metals Group FMG.AX were down as much as 1.8% and 3%, respectively.
Gold stocks .AXGD rebounded after two consecutive days of losses as investors scurried to safe-haven assets.
Newcrest Mining NCM.AX and Northern Star Resources NST.AX gained up to 1% and 2.2%, respectively.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was up 1.3% at 11,756.78, reopening from a holiday on Thursday.
Kathmandu Holdings KMD.NZ , the top percentage gainer in the index, rose up to 15% after the outdoor retailer forecast a nearly 40% rise in its first-half group underlying operating earnings.