Australian shares rise on rate outlook, takeover activity

Oct 19 (Reuters) - Australian shares hit a more than 5-week high on Monday, as financials gained and a spate of takeover deals lifted several stocks, while softer jobs data last week strengthened bets that the central bank is nearing the end of its tightening cycle.

The S&P/ASX 200 index .AXJO was up 0.4% at 8,841.40, as of 0021 GMT, after hitting its highest since September 10 earlier in the session.

Data released on Thursday showed employment unexpectedly fell last month, prompting investors to scale back expectations of further policy tightening and increase bets that the Reserve Bank of Australia will be able to cut interest rates in coming quarters. Swap markets now imply a 24.9% chance of a rate hike in November, down from 32% before the data. 0#AUDIRPR

Financials .AXFJ gained nearly 1%, with the "Big Four" banks rising more than 1%. The sub-index earlier hit its highest since August 18.

Energy stocks .AXEJ rose 1.3%. Santos STO.AX and Woodside Energy WDS.AX climbed 2.1% and 1.3%, respectively.

Technology stocks .AXIJ slid 2.3%, tracking Wall Street's fall on Friday. Xero XRO.AX and WiseTech Global WTC.AX slipped 3.8% and 1.6%, respectively. .N

Miners .AXMM fell 0.4%. Rio Tinto RIO.AX, BHP BHP.AX and Fortescue FMG.AX declined between 0.1% and 1.2%.

Shares of South32 S32.AX slumped as much as 3% after the company reported a slower-than-expected 2% rise in first-quarter copper production.

Cleanaway Waste Management CWY.AX rose 19.8% and was set for its best session since 2011 after the waste management company backed EQT's A$9.3 billion ($6.48 billion) buyout.

Challenger CGF.AX jumped 16.8% to touch a more than 8-year peak after a unit of Japan's Daiichi Life offered to take over the firm at an A$7.94 billion valuation.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2% to 13,728.95 points.

($1 = 1.4349 Australian dollars)