Updates to market close

By Nikita Maria Jino

Dec 30 (Reuters) - Australian shares snapped a three-day winning streak in thin trading volumes on Monday, weighed down by losses in financials and real estate stocks.

The S&P/ASX 200 index .AXJO declined 0.3% to end the session at 8,235 points.

Overall, around 306.7 million shares were traded, half of the 30-day daily average of 595.5 million shares, according to LSEG data.

"It was a disappointing session, given we are at that time of the year where people are being treated to fairly solid gains. But it doesn't look like we are going to see that eventuate today," said Tony Sycamore, market analyst at IG.

Heavyweight financials .AXFJ dropped 0.5% on the day on the back of light trading, after adding 3.4% last week. Top lender Commonwealth Bank of Australia CBA.AX shed 0.7%.

Most banks, particularly the "Big Four", have been on a tear this year, heading for a near 30% gain, as investors brushed aside concerns of rich valuations for stable returns and strong asset quality in a high interest rate environment.

Banks will continue to be the "preferred place to park investors' cash", given they prefer attractive dividend yields and wouldn't want to take on the mining sector on concerns around China and tariffs, Sycamore said.

Real estate firms .AXRE dipped 1.8%, with Australia's largest property developer Goodman Group GMG.AX sliding 1.4%. Higher U.S. yields in the wake of a hawkish rate cut from the Federal Reserve is playing out in the rate-sensitive sector, Sycamore said.

Bucking the trend, energy stocks .AXEJ remained in the green as oil prices climbed. Sector majors Woodside Energy WDS.AX and Santos STO.AX gained 1% and 1.7%, respectively. O/R

New Zealand's benchmark S&P/NZX 50 index .NZ50 extended its winning run into the fifth consecutive session, ending 0.5% higher at 13,270.01 points, its highest close since Oct. 4, 2021, helped by utilities and healthcare firms.

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Sumana Nandy)

((Nikita.Jino@thomsonreuters.com;))

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