Dec 16 (Reuters) - Australian shares declined nearly 1% on Friday, set for a second straight weekly fall, as the U.S. Federal Reserve's higher-for-longer rate stance and slowing economic activity in China fanned recession concerns and triggered a broad-based sell-off.

The S&P/ASX 200 index fell 0.9% to 7,137.00 by 2353 GMT after closing 0.6% lower on Thursday. S&P 500 E-minis futures were down 0.03%.

Heavyweight financials fell 1.5%, with the so-called "big four" banks slipping between 1.2% and 1.5%.

Gold stocks dropped 3.5%, tracking overnight weakness in bullion prices. Sector major Newcrest Mining was down 3.1%.

Energy stocks were down 0.3% after a 2% drop in oil prices overnight on worries over fuel demand outlook.

Technology stocks slipped 2%, following a sharp drop in the tech-heavy Nasdaq index overnight.

Mining stocks rose 0.1% and were the only gainers on the benchmark index. BHP Group and Rio Tinto climbed 0.6% and 2%, respectively.

Aurizon Holdings rose 3.6% to top the benchmark index after Australia's largest rail freight operator said it would sell its East Coast Rail business for A$425 million ($284.71 million) in cash.

Mineral Resources Ltd said it planned to make an off-market bid for the remaining stake in oil explorer Norwest Energy that it does not already own through a scrip deal with an implied equity value of about A$403 million. Its shares were last up 0.3%.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.6% to 11,531.97. (Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu)