Updates to market close

By Nikita Maria Jino

Dec 18 (Reuters) - Australian shares closed almost flat on Wednesday, as gains in healthcare and technology stocks countered losses in financials, while expectation firmed for the U.S. Federal Reserve to signal a cautious approach to rates in 2025.

The S&P/ASX 200 index .AXJO ended 0.1% lower at 8,309.4 points, declining for a sixth session in seven.

Robust U.S. retail sales data and Atlanta Fed's closely watched GDPNow estimate are fuelling expectations that the Fed will deliver a hawkish interest rate cut later in the day and may signal less easing in 2025.

In Australia, investors are increasingly confident that the domestic central bank will cut rates as early as February, with a 70% chance of a quarter-point reduction priced in. 0#AUDIRPR

However, the decision will largely depend on fourth-quarter consumer price figures due out in late January.

"We do not see the Reserve Bank of Australia moving to expansionary policy settings, given the relatively low peak in the unemployment rate, the improving household outlook and support from the public sector," analysts at ANZ said in a note.

Financials .AXFJ fell 0.4%, with top lender Commonwealth Bank of Australia CBA.AX shedding 0.9%.

Healthcare stocks .AXHJ rose 0.6% to hit their highest close since Dec. 9, with biotech firm CSL CSL.AX gaining 1.2%, as the Aussie dollar hit a new low.

Technology stocks .AXIJ climbed 0.5% to their highest close since Dec. 10, with logistics software maker WiseTech Global WTC.AX gaining 1.1%.

Real estate stocks .AXRE closed marginally higher after touching a one-week high earlier in the session.

Among individual stocks, Insignia Financial IFL.AX dipped as much as 5.3% to top losses on the benchmark after the money manager rejected Bain Capital's A$2.67 billion ($1.69 billion) takeover bid.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 closed 0.4% lower at 12,865.55.

Meanwhile, New Zealand's consumer confidence improved in the fourth quarter, reaching its highest level in three years.

(Reporting by Nikita Maria Jino and Roushni Nair in Bengaluru; Editing by Subhranshu Sahu)

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

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