May 16 (Reuters) - Australian shares jumped to an over two-month high on Friday, led by gains in banks and miners, ahead of the Reserve Bank of Australia's $(RBA)$ policy decision next week, where the central bank is widely expected to cut interest rates.
The S&P/ASX 200 index .AXJO rose as much as 1.2% to 8,398.2, its highest level since February 20, by 0029 GMT. The index was on track to log its eighth consecutive session of gains.
The benchmark is up 1.8% for the week, its best weekly performance since April 28.
The RBA is expected to cut interest rates by 25 basis points on Tuesday, its second in over four years, and deliver two more cuts this year, a Reuters poll showed.
Meanwhile, iron ore prices have been on a winning streak this week, thanks to a trade truce between China and the U.S. that lifted hopes of stronger demand. IRONORE/
On the local bourse, miners .AXMM climbed 1.7%, since China is Australia's largest trading partner.
The sub-index is on track to record its sixth straight weekly gain.
Miners BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX added 0.8%, 0.9% and 0.9%, respectively.
Gold stocks .AXGD advanced by 3.7%. However, the sub-index lost 10.4% this week.
Gold miners Northern Star Resources NST.AX and Genesis Minerals GMD.AX were up 3.6% and 4.9%, respectively.
Evolution Mining EVN.AX rose 4.9% and was among the top gainers on the benchmark index.
Financials .AXFJ rose 1%, with National Australia Bank NAB.AX, Westpac WBC.AX, ANZ ANZ.AX and Commonwealth Bank of Australia CBA.AX rising between 1% and 1.9%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.4% to 12,834.33.
Globally, Japan's Nikkei .N225 was down 0.1% on Friday, while overnight the U.S. S&P 500 .SPX ended 0.41% higher and the Nasdaq .IXIC closed down 0.18%.
(Reporting by Roshan Thomas in Bengaluru; Editing by Eileen Soreng)
((Roshan.Thomas@thomsonreuters.com))
For more information on DIARIES & DATA: U.S. earnings diary RESF/US Wall Street Week Ahead .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets NEWS1