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By Nichiket Sunil

Jan 27 (Reuters) - New Zealand shares ended marginally lower on Monday, with index heavyweight Auckland International Airport leading the losses, while investors focused on the U.S. Federal Reserve's policy meeting outcome later this week.

New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.2% lower at 12,999.72, declining for a second consecutive session.

Focus is on the Fed's policy decision, expected on Wednesday, with the central bank expected to keep interest rate on hold, while investors will be watching for any clues that a rate cut could come in March if inflation continues to ease closer to its target.

Meanwhile, local traders will be looking out for signs of easing from the Reserve Bank of New Zealand (RBNZ), which is due to release its statement on Feb. 19.

"The market is currently looking for directions with the earnings season ahead as well as RBNZ monetary policy statement," said Jeremy Sullivan, a financial advisor with Hamilton Hindin Greene.

Markets are indicating an around 63.1% chance of a quarter-point cut, with a 36.9% probability of a more aggressive half-point reduction. 0#NZDIRPR

Auckland International Airport AIA.NZ, the operator of New Zealand's largest and busiest airport, fell 2.2% and was among the top losers on the local bourse.

"There has been a little bit of profit taking from Auckland International Airport, which has recently sold a large chunk previously owned by the Auckland City Council," Sullivan said.

Tracking the negative sentiment, healthcare products marketer EBOS Group EBO.NZ and electricity generator Contact Energy CEN.NZ fell 2% and 1.2% respectively.

Bucking the trend, Synlait Milk SML.NZ extended gains, rising 16% to its highest since April 16, 2024, after the company signalled a return to profitability in fiscal year 2025 on Friday.

The Australian market .AXJO was closed for a public holiday.

(Reporting by Nichiket Sunil in Bengaluru; Editing by Varun H K)

((Nichiket.Sunil@thomsonreuters.com;))