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By Sneha Kumar

April 28 (Reuters) - Australian shares rose for the third consecutive session on Monday, driven by gains in heavyweight financials and healthcare stocks ahead of the country's quarterly inflation data later this week.

The S&P/ASX 200 benchmark index .AXJO closed 0.4% higher at 7,9971 points, its highest level since late March. The benchmark rose nearly 2% last week.

The first-quarter inflation figures, due on Wednesday, are expected to fall marginally, building the case for an interest rate cut from the Reserve Bank of Australia $(RBA)$ next month.

If the consensus call for quarterly core consumer price index $(CPI.UK)$ is realised then RBA is likely to cut rates on May 20, said Chris Weston, head of research at Pepperstone trading platform.

Banking stocks .AXFJ advanced 0.3%, with three of the "Big Four" banks rising between 0.8% and 1.7%. The country's largest lender, Commonwealth Bank of Australia CBA.AX, fell 1.1%, moving further away from the record high touched last week.

Healthcare stocks .AXHJ added 0.9%, with the most expensive stock CSL CSL.AX climbing as much as 1% to a more than two-week high.

Bucking the trend, mining .AXMM declined 0.8% as iron ore futures slid on fears of top consumer China cutting steel output. IRONORE/

Mining giants BHP BHP.AX slipped 1.1% and Fortescue FMG.AX fell 0.3%, while Rio Tinto RIO.AX advanced 0.1%.

Meanwhile, Australian critical mineral miners such as Lynas Rare Earths LYC.AX, Delta Lithium DLI.AX and Sayona Mining SYA.AX, rose between 2.9% and 5.3% after news of significant funding from a potential $150 billion U.S. defence package.

Gold miners .AXGD also retreated following a slump in bullion prices as easing U.S.-China trade tensions dented demand for safe-haven assets. GOL/

Among corporate news, shares of James Hardie JHX.AX rose 1.2%. The Australian Securities Exchange said it will review shareholder approval requirements for large corporate buyouts by listed companies, after investors questioned James Hardie's $8.75 billion deal for U.S. builder AZEK AZEK.N.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.7% higher at 12,098.89 points.

(Reporting by Sneha Kumar in Bengaluru; Editing by Eileen Soreng)

((sneha.kumar@thomsonreuters.com))

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