Updates for GDP data, latest share moves

March 4 (Reuters) - Australian shares extended early losses on Wednesday, driven by a selloff across most sectors, after surprisingly brisk economic growth rekindled interest rate-hike bets, while the widening Middle East conflict heightened inflation concerns.

The S&P/ASX 200 .AXJO slid as much as 2.2% to 8,881.90, the lowest level in three weeks, and heading for its weakest session since February 6 if current losses hold.

The benchmark has fallen more than 3% so far this week, heading for its biggest weekly drop since April last year.

Data earlier in the day showed that the Australian economy expanded at its fastest annual pace in nearly three years in the December quarter, rekindling inflation concerns and reinforcing bets that interest rates may need to rise to cool the momentum.

Markets currently see a 33.4% chance of a quarter-point rate hike at the March 17 meeting, compared with 28% the previous day. 0#AUDIRPR

The outlook for equity markets has also been dimmed by the widening Middle East conflict that threatens to unleash a wave of global inflation. And though Australia is a net energy exporter, sustained oil rises act as a tax on consumers and businesses. MKTS/GLOB

"The (Reserve Bank of Australia) board will stay laser-focused on how the conflict in the Middle East continues to evolve and the risks it brings in terms of a supply shock feeding into higher inflation," said Tony Sycamore, analyst at IG.

In Sydney, financials .AXFJ dropped 1.8% and were set for a fifth straight session of declines. Top lender Commonwealth Bank of Australia CBA.AX slid 1.5%, while the remaining "big four" banks dropped between 1.3% and 2.7%.

Miners .AXMM fell 2.7% after iron ore prices wobbled on Tuesday as investors weighed rising freight costs due to the widening Iran conflict. IRONORE/

Mining giants BHP BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX dropped between 0.8% and 3.3%.

Airline stocks continued to take a beating, with Virgin Australia VGN.AX dropping as much as 3.7% to a one-month low. Larger rival Qantas QAN.AX fell 1.6%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 fell 0.9% to 13,491.97 and was on track for a third straight session of losses.

(Reporting by Nichiket Sunil and Kumar Tanishk in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

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