(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 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 and Rio Tinto both closed higher.
New Zealand’s benchmark NZX 50 index eased 0.4 percent, or 22.8 points, to finish at 5,546.9. (Editing by Kim Coghill)