Australian shares closed the week about 0.2% firmer after Chinese retail sales in October beat forecasts.

The S&P/ASX 200 Index rose almost 1% or 61.2 points Friday to close at 8,285.20.

China's retail sales rose by a better-than-expected 4.8% in October, Reuters reported.

On the domestic front, the Reserve Bank of Australia will remain "restrictive enough" until it sees a downward trend in inflation, said Governor Michele Bullock.

Speaking at the Australian Securities and Investments Commission annual forum Thursday, Bullock said while there is a good reason for other central banks to lower their rates, Australia's monetary policy is not as restrictive as other countries.

Elsewhere, Australia's expected inflation rate fell by 0.2 percentage points to 3.8% in November, the Melbourne Institute reported. Total pay was expected to grow by 1.5% over the next 12 months.

In company news, Aspen Group (ASX:APZ) increased its fiscal 2025 underlying earnings per share guidance to AU$0.16, a 5% rise from the previous forecast of AU$0.152. The company's shares finished almost 8% higher.

Coles Group (ASX:COL) and Woolworths Group (ASX:WOW) said they would defend the class action proceedings filed against them in the Australian Federal Court by law firm Gerard Malouf & Partners. Coles and Woolworths' shares each gained about 1% at market close.

ASX (ASX:ASX) lodged a concise response to the proceedings brought by the Australian Securities and Investment Commission (ASIC) in the Federal Court on the previous Clearing House Electronic Subregister System (CHESS) replacement project, denying any law violation. The securities exchange operator's shares closed up nearly 1%.