At 10:30 (AEST), the benchmark S&P/ASX 200 index was down 14 points or 0.21 percent at 6,517.10, while the broader All Ordinaries index was down 14.40 points or 0.21 percent at 6,712.10.
"Market sentiment split in overnight trading," CMC Markets chief market strategist Michael McCarthy said.
"Currency, bond and commodity markets appeared to respond to further good news on vaccines, while share investors seemed to focus on the potential economic costs of rising infection rates."
Energy stocks dragged after outperforming for much of the week, while healthcare stocks were also firmly lower.
One of the exceptions in early trade was industrials, which rallied largely on the back of gains by toll road operator, Transurban. Recent news suggested that the company was recovering after suffering losses earlier in the year due to COVID-19.
In the financial space, the big banks were mixed with Commonwealth Bank down (0.09 percent), Westpac Bank up (1.08 percent), ANZ up (0.18 percent) and National Australia Bank down (0.05 percent).
Mining stocks were mostly lower with Rio Tinto down (0.05 percent), BHP down (0.68 percent) and goldminer Newcrest down (1.45 percent), however Fortescue Metals was up (0.47 percent).
The country's oil and gas producers were mixed with Oil Search down (2.09 percent), Santos unchanged (0 percent) and Woodside Petroleum down (0.51 percent).
Australia's largest supermarkets also varied with Coles up (0.56 percent), and Woolworths down (0.42 percent).
Meanwhile telecommunications giant Telstra dropped (0.33 percent), the national carrier Qantas rallied (0.77 percent) and biomedical firm CSL sank (1.07 percent).
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