News: XFJ Australia shares end flat on Fed caution; NZ hits record

(Updates to close)

Dec 11 (Reuters) - Australian shares ended flat on Monday as a rally in financials and materials stocks was offset by losses in other sectors as investors grew cautious ahead of a widely expected U.S. interest rate hike later this week.

The S&P/ASX 200 index (xjo) rose 3.90 points or 0.07 percent to 5,998.30 at the close of trade, failing to track a strong lead from Wall Street where stocks climbed on Friday. [.N]

Traders see a 96.2-percent chance of a quarter-point Fed hike, according to Thomson Reuters data.

The benchmark gained 0.3 percent on Friday, propelled by banks and oil and gas stocks.

Banks accounted for most of the gains on Monday, with the Australian financials index .AXFJ rising 0.2 percent to its highest since Nov. 29, registering fourth session of consecutive gains.

Heavyweight Commonwealth Bank of Australia (CBA) ticked up 0.5 percent to a near 2-week high, pushing the index up, while Insurance Australia Group Ltd (IAG) rose 2.2 percent to its highest close since Nov. 22.

Materials stocks followed closely as they benefited from the rise in iron and copper prices. [IRONORE/][MET/L]

Mining giant BHP (BHP) climbed 0.1 percent, while its rival Rio Tinto Ltd (RIO) rose 0.4 percent.

Conversely, industrials accounted for most of the losses, with Transurban Group (TCL) falling 0.6 percent to its lowest close in nearly 1-1/2 months.

On the other hand, New Zealand's benchmark S&P/NZX 50 index (nz50) rose 0.5 percent or 42.42 points to finish the session at 8,277.51, a fresh record high.

Auckland International Airport Ltd (AIA) and Fletcher Building Ltd (FBU) led the upward march of the index as they rose 2.8 percent and 2 percent, respectively.