Updates to close

By Roushni Nair

Oct 1 (Reuters) -Australian shares closed lower on Tuesday, with miners and financials leading the decline, after a stronger-than-expected monthly retail sales data sparked concerns that the country's central bank could hesitate to cut interest rates anytime soon.

The S&P/ASX 200 index .AXJO slipped 0.7% to 8208.9 points to clock their worst session in more than three weeks. The benchmark index snapped a three-day winning streak to retreat from record highs touched in the previous session.

Australian retail sales surprised with a 0.7% rebound in August, potentially strengthening the Reserve Bank of Australia's (RBA) resolve to keep interest rates steady during its next policy meeting in November.

"This increase, following unseasonably warm weather, dampens the likelihood of an RBA rate cut before the year-end, a prospect that weighed on the big banks and consumer-focused stocks," said Tony Sycamore, a market analyst at IG Australia.

The market expects only an 18% chance of a reduction at the November meeting, with majority expecting a hold at the current rate of 4.35%. 0#RBAWATCH

Miners .AXMM retreated 2% after a five-session winning streak as market optimism waned amid uncertainty over unconfirmed China stimulus initiatives disclosed in the media.

"Until those details are fully disclosed, markets tied to the Chinese economy, like the Hang Seng — up nearly 25% in the past week — and our own ASX200, are at risk of a deeper pullback," Sycamore said.

The mining sub-index gained about 12% in September, its best month in nearly two years. Shares of BHP Group BHP.AX and Rio Tinto RIO.AX fell over 2.5% each on Tuesday.

Banks .AXFJ followed suit to shed as much as 1.7%, marking a nearly five-week low. The "Big Four" banks declined between 0.5% and 2%.

Among individual stocks, REA REA.AX rose nearly 5% after the property listing firm ended its month-long pursuit of UK's Rightmove RMV.L.

Shares of Namoi Cotton NAM.AX rose more than 8% after Dutch commodities trader Louis Dreyfus Co raised its offer for the Australian cotton producer.

New Zealand's S&P/NZX 50 index .NZ50 climbed 0.3% to 12,466 points.

Reporting by Roushni Nair in Bengaluru; Editing by Sherry Jacob-Phillips

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