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By Rishav Chatterjee

May 13 (Reuters) - Australian shares closed at a more than eleven-week high on Tuesday, despite paring some early gains, buoyed by easing U.S.-China trade tensions and growing expectations of an interest rate cut by the domestic central bank this month.

The S&P/ASX 200 index .AXJO ended 0.4% higher after rising 1% earlier in the day. The benchmark closed in the green for the fifth straight session.

Traders are expecting the Reserve Bank of Australia $(RBA)$ to cut rates at its meeting next week as Australia's business conditions softened in April and consumer confidence improved, according to separate reports.

The mixed data supported the case for an RBA rate cut on May 20, but the central bank is expected to be cautious as sentiment surveys pointed to a strong labour market in the near term, Citi analysts said.

Expectations of aggressive easing also cooled after the U.S. and China agreed to temporarily lower tariffs.

The evolving view on rates affected Sydney's financial stocks .AXFJ, which closed 0.1% higher after rising nearly 1% earlier in the session.

Most sectors rallied, led by an 3.4% jump in tech stocks .AXIJ, tracking a positive lead from their western peers.

WiseTech Global WTC.AX and Megaport MP1.AX gained 4.9% and 5.3%, respectively.

Energy stocks .AXEJ were helped by crude oil's third consecutive day of gains. Woodside WDS.AX and Santos STO.AX ended 3.7% and 2.9% higher.

The tariff cut boosted iron ore, which underpinned miners .AXMM. Fortescue FMG.AX soared 2.7%, BHP added 2.1% and Rio Tinto RIO.AX ended at A$119.85, just below the psychologically relevant A$120 level.

Healthcare stocks .AXHJ climbed 1.9%, after analysts flagged U.S. President Donald Trump's order slashing prices of prescription drugs would be difficult to implement and might face legal challenges.

Clarity Pharmaceuticals CU6.AX emerged as the top gainer on the benchmark after dropping 8.6% on Monday. CSL CSL.AX closed 2.4% higher.

New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.9% higher at 12,786.74 points.

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Sumana Nandy)

((Rishav.Chatterjee@thomsonreuters.com;))

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