News: RIO Banks, miners lead Australia shares higher; inflation awaited

	  ASX 200 jumps most in 2 weeks 

	  Aussie inflation due on Wednesday 

	  Banks, miners rise for 2 straight days 

	  NZX 50 clocks 3 days of decline  

(Updates to close)

Australian shares advanced on Monday, with financials and miners leading the charge, while investors keenly awaited a crucial local inflation reading due later in the week, which could cement expectations of further monetary policy tightening.

The S&P/ASX 200 index (xjo) rose 0.9% at 7989.60, its biggest intra-day percentage jump since July 12.

June quarter consumer price data is due on Wednesday, with inflation expected to increase to 3.8% from 3.6% in the prior quarter. There are concerns the Reserve Bank of Australia (RBA) could raise interest rates when it meets on Aug. 6.

A mixed employment report earlier this month and stubbornly high inflation raised expectations of a RBA rate hike as early as August, with markets now pricing in a 21% chance of a hike from 12% two weeks ago.

"The Aus CPI print...could put the 6 August RBA meeting as a truly 'live' event, while a weaker-than-expected outcome could take any chance of a rate hike off the table – much to the relief of the local equity market," Chris Weston, head of research at brokerage Pepperstone said in a note.

Financials .AXFJ rose as much as 1.1% to their highest since July 18. Top lender Commonwealth Bank of Australia (CBA) rallied 1% to a record high, while ANZ Group (ANZ) shed 1%.

Miners .AXMM followed suit to add 0.1% in a two-day rally. BHP Group (BHP) rose 0.05%, while Rio Tinto (RIO) fell 0.07% ahead of its full-year earnings on Wednesday.

News of fresh stimulus from China last week propped up mining stocks, a sector that would benefit most as China is resource-rich Australia's top trading partner.

Real estate stocks .AXRE , healthcare firms .AXHJ , and consumer staples .AXSJ rose between 0.7% and 1.4%.

New Zealand's benchmark S&P/NZX 50 index (nz50) dipped 0.3% in its third-straight session of losses. Construction products maker Fletcher Building (FBU) topped losses while weighing on the benchmark after flagging supply-chain woes.