Mumbai, Sept. 25 -- Australia's ASX 200 fell 37 points, or 0.4%, to close at 8,665 on Friday, marking its second straight session of losses. Investors remained cautious ahead of next week's Reserve Bank of Australia (RBA) policy decision.

Persistent inflation has raised expectations of further interest-rate hikes after three increases earlier this year. Investors are also awaiting August inflation data, following a July reading that came in above expectations and remained higher than the RBA's 2-3% target range.

August employment data sent mixed signals. The unemployment rate rose to a near five-year high of 4.6%, although employment increased by more than expected.

Most sectors ended lower, led by technology, consumer services and log...