Australian shares hit six-week low as Macquarie, banks weigh

• Macquarie shares drop 5.7%, hit six-month low
• Block's ASX shares down 15.8%
• Qantas falls 6.6% after trimming forecast

By Nichiket Sunil

Nov 7 (Reuters) - Australian shares closed at their weakest level in more than six weeks on Friday, weighed down by a steep drop in Macquarie after the top investment bank missed profit expectations, while a broader slide in major lenders deepened losses.

The S&P/ASX 200 index .AXJO fell 0.7% to 8,769.70, its lowest close since September 24 and a second straight weekly loss.

Macquarie MQG.AX tumbled 5.7% to a six-month low after reporting a first-half profit miss, pressured by weakness in its key commodities and markets trading business.

"We think the market was aware of the risk of a 1H26 miss given the softness in (Macquarie's) first quarter earnings. However, the extent of the miss will still come as a surprise," Citi analysts said in a note.

Macquarie's weakness pulled the broader financials sub-index .AXFJ 1.3% lower on the day, though it still ended the week 1.4% higher, supported by gains in top lenders Commonwealth Bank of Australia CBA.AX and Westpac WBC.AX.

CBA and Westpac fell 1.5% and 1.8%, respectively, on Friday but remained on track to post weekly gains.

The broader resources index .AXMM slipped 0.7% and lost 2.7% over the week, weighed by a pause in gold’s rally and continued weakness in iron ore prices. BHP BHP.AX and Rio Tinto RIO.AX dropped 0.8% and 1.3% respectively.

Technology stocks .AXIJ slid 2.3% to a six-month low, mirroring Wall Street's declines amid concerns over lofty valuations in AI-linked giants .N.

Local shares of payments firm Block XYZ.AX XYZ.N tumbled 15.8% to a five-month low after its third-quarter profit missed estimates.

Flag carrier Qantas Airways QAN.AX shed 6.6%, slipping to a six month-low after cutting forecasts amid lower non-resources corporate demand and higher costs.

New Zealand's benchmark S&P/NZX 50 index .NZ50 closed up 0.2% at 13,599.21 points.