Updates to include sector moves

** Australia's financials sub-index .AXFJ falls 2.5% to hit their lowest since October 2024

** Falls in sub-index in line with drop in broader benchmark .AXJO, which is down 1.4

** Downward moves in financials is led by largest bank, Commonwealth Bank of Australia CBA.AX, which falls 4.2% to A$147.22

** CBA shares set for their weakest trading session since early August, 2024

** Bloomberg reported the gap between CBA's current share price and analysts' expectations is indicating to weakest return potential among global financials

** Three of the other "Big Four" banks track CBA's slump

** National Australia Bank NAB.AX, Westpac WBC.AX and ANZ Group ANZ.AX drag between 1.1% and 2.9%

** Australian banks have faced criticism for their extremely high valuations, with CBA and the rest of the lending majors trading at a price significantly higher than their earnings

** AXFJ down 3.9% YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))