Updates to market close

By Nikita Maria Jino

Jan 21 (Reuters) - Australian shares ended at a one-week low on Wednesday, dragged down by banks on higher-for-longer interest rate concerns, though miners limited losses after hitting a record closing high.

The S&P/ASX 200 index .AXJO fell 0.4% to 8,782.90, its lowest closing level since January 12. The benchmark booked losses for a third consecutive session.

Financials .AXFJ slipped 1.6% to end at a one-month low, with top lender Commonwealth Bank of Australia CBA.AX tumbling to its lowest since April last year.

The sub-index fell for a third straight session and is down nearly 3.5% so far this month, as higher-for-longer interest rate worries weigh on bank margins. The "big four" lenders report earnings next month.

"A sustained return is likely only once markets see clearer evidence that inflation is decisively cooling and rate expectations stabilise, rather than remaining hostage to headline-driven volatility and policy uncertainty," Vantage Markets analyst Hebe Chen said.

Markets now await local jobs data on Thursday and quarterly inflation print due next week, ahead of the central bank's monetary policy meeting on February 3.

Swaps imply a 26.5% probability of a quarter-point cash rate hike by the Reserve Bank of Australia. 0#AUDIRPR

Rate-sensitive real estate .AXRE and consumer discretionary stocks .AXDJ added to the benchmark's losses, declining 1.6% and 2.1%, respectively.

Miners .AXMM bucked the trend to end at a record high, lifted by a 2.6% jump in Rio Tinto RIO.AX after the global miner's fourth-quarter iron ore and copper output beat expectations. It marked the sub-index's eighth record close in January.

Gold miners .AXGD extended their record run to a third session as geopolitical risks drove demand for the safe-haven metal. Evolution Mining EVN.AX closed at a record after reporting higher second-quarter output. GOL/

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 1.2% to hit 13,417.17, its lowest close since December 19. Investor focus will be on domestic quarterly inflation report due Thursday.

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Rashmi Aich)

((Nikita.Jino@thomsonreuters.com;))