Australian shares ended higher on Monday on the back of a rally in rate-sensitive financials, technology and real-estate stocks on renewed bets that the U.S. Federal Reserve was likely to cut interest rates this year.

Local traders awaited the Reserve Bank of Australia's policy meeting on Tuesday where the central bank is expected to hold its key policy rate, according to a Reuters poll.

The S&P/ASX 200 benchmark index closed 0.7% higher at 7,682.4 points. The benchmark ended 0.6% higher on Friday.

Signs of a cooling labour market in the United States on Friday sent positive rate cut signals to global investors after recent robust economic growth and inflation print.

"Friday's data eases investors' fears of central banks putting their foot back on the gas which is why we're seeing stocks lift broadly," said Josh Gilbert, market analyst at eToro.

The RBA's language and commentary will be key areas of focus, he added, backing market expectations of a hold in rate.

Rate-sensitive financials ended 1% higher in Australia, gaining for a third-straight session with all "Big Four" banks rising.

Commonwealth Bank of Australia ended 0.9% higher, while Westpac jumped 2.7% to a seven-week high after declaring a special dividend and raised its share buyback programme.

Real-estate stocks, which are closely linked to interest rates in the country, closed up 1.7%.

Technology stocks tracked their Wall Street peers to end 1% higher after earnings from global tech-giants improved market sentiment. Shares of WiseTech Global and Xero rose 2.2% and 0.3%.

Miners added 0.9%, rising for the third straight day, supported by iron-ore prices after latest efforts from top customer China to revive the country's struggling property market.

BHP Group, Rio Tinto and Fortescue added between 0.4% and 2.6%.

New Zealand's benchmark S&P/NZX 50 index fell 1% to 11,820.78 points. (Reporting by Sneha Kumar in Bengaluru; Editing by Nivedita Bhattacharjee)