Australian shares were dragged lower as investor sentiment remained downbeat after oil prices fell amid disappointment over China's stimulus plan.

The S&P ASX 200 Index fell 0.1% or 10.6 points to 8,255.60.

Oil prices were lower as oversupply concerns and China's stimulus plan weighed on markets in prior sessions, Reuters reported.

On the domestic front, Australian business confidence strengthened to its highest level since early 2023 in October, while conditions were unchanged amid mixed readings among industries.

Meanwhile, the weekly consumer confidence improved further, taking the four-week average to its highest level since the start of 2023, according to a report by ANZ Research and Roy Morgan Research.

Furthermore, consumer sentiment improved in November as the pressure on finances eased, but factors such as political uncertainties that emerged around the survey period mean that the lift is "shakier than it looks," according to a Westpac report.

In company news, the Australian Competition and Consumer Commission's domestic airline competition report showed that domestic airline passengers are facing increased airfares and fewer choices due to Regional Express' (ASX:REX) exit from services between metropolitan cities.

Aurizon Holdings (ASX:AZJ) expanded its on-market share buyback by AU$100 million, bringing the total potential combined repurchase size to AU$250 million. The company's shares were down almost 3% at market close.

South32 (ASX:S32) agreed to acquire a 19.9% interest in TSX Venture Exchange-listed American Eagle Gold for $22 million. The company's shares closed down more than 2%.