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By Rajasik Mukherjee

Nov 1 (Reuters) -Australian shares fell for a third straight session on Friday to post their worst week in nearly three months, as Macquarie led index heavyweight financials lower after it missed first-half profit estimates.

The S&P/ASX 200 index .AXJO closed 0.5% lower at 8,118.8, declining 1.1% for the week - its biggest since the week ended Aug. 9.

Rate-sensitive financials .AXFJ lost 0.9%, with the "big four" banks down between 0.1% and 1.5%.

Macquarie Group MQG.AX fell 3.6%, hitting its lowest since Sept. 5, after Australia's biggest investment bank by assets reported first-half profit below analysts' estimates.

"Macquarie's profit miss created a further drag on the ASX200, while the prospects of there being no rate cut until perhaps Q1 2025 kept the financial sector under pressure," said Tim Waterer, chief market analyst, KCM Trade.

The Reserve Bank of Australia (RBA) is meeting next week and considered certain to hold rates at 4.35%.

"While the inflation pace continues to slow, it is not yet enough to signal rate cuts," said Oscar Gee, equity research associate at CLSA Australia.

"Focus will likely be on (RBA Governor) Michelle Bullock's commentary, which has remained hawkish at recent meets."

Meanwhile, miners .AXMM gained 0.4%, with BHP Group BHP.AX rising 0.3% and Rio Tinto RIO.AX up 1.7%.

A private survey showed that new home prices in China rose at a quicker pace in October, traditionally a peak season for house hunting.

Energy stocks .AXEJ climbed 1.1%, as oil prices edged higher after reports that Israel was preparing a retaliatory strike on Israel from Iraq in the coming days. O/R

Oil and gas giant Woodside Energy WDS.AX advanced 1.1%, while smaller peer Santos STO.AX gained 0.7%.

The sub-index lost 1.4% for the week, its fourth consecutive week of losses.

Real estate stocks .AXRE fell 0.7% on Friday, while IT stocks .AXIJ lost 0.4%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 fell 0.6% to 12,559.28, declining 1.7% for the week.

Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu

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