* AXJO at 20-mth closing high

* Mining stocks rise 1.1%

* CBA, BHP, RIO touch record highs

Dec 28 (Reuters) - Australian shares tracked global markets higher on Thursday to close at their highest level in 20 months on rising bets that key central banks will start trimming interest rates early next year.

Mining and banking stocks lifted the S&P/ASX 200 index 0.7% to 7,614.30 points, its highest closing level since late April 2022. The benchmark, which closed 0.8% higher on Wednesday, was on track to end the year with gains.

World stocks climbed to their highest in more than a year on Wednesday as hopes of monetary loosening continued to boost investors' risk appetite.

"There were a lot of investors with defensive strategies and short in 2023. These investors are now turning positive," said Brad Smoling, Managing Director at Smoling Stockbroking.

In Sydney, heavyweight miners led gains on the benchmark, rising 1.1% on robust iron ore and base metal prices.

Mining behemoths BHP Group, Rio Tinto and Fortescue all climbed to close at record highs.

Rate-sensitive financials closed about 0.8% higher ending at their highest level since mid-February.

The 'big four' banks all rose between 0.5% and 0.1%, with top lender Commonwealth Bank of Australia touching its all-time high.

Gold stocks jumped nearly 1.1% after bullion prices hit a 3-week high on a weaker dollar.

Sector heavyweight Northern Star Resources climbed about 0.9%, while ASX-listed shares of Newmont Corp gained nearly 2.1%.

The gold sub-index is set to post its best year since 2016, having risen 27% so far.

Information technology firms rose for a third consecutive day, gaining about 1% after Wall Street peers continued their rally overnight.

Healthcare stocks and energy stocks rose 0.5% and 0.4%, respectively.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index gained 0.8% or finish the session at 11,768.68 points. (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Nivedita Bhattacharjee)