* AXJO hits 20-month high

* Miners close at 8-month high

* U.S. rate cuts expected early next year

Dec 27 (Reuters) - Australian shares ended at a near 11-month closing high on Wednesday, led by heavyweight mining stocks, while gains on Wall Street on growing bets of U.S. interest rate cuts further boosted investor sentiment.

The S&P/ASX 200 index closed 0.8% higher at 7,561.20 points. The benchmark had hit its highest level since late April 2022 earlier in the session.

All three Wall Street indices extended gains overnight as growing hopes that the U.S. will begin cutting interest rates as soon as March improved risk appetite.

"Global inflation readings have been coming in on the softer side of expectations in recent weeks (around the globe), which has given financial markets an extra dose of optimism heading into the year-end," said Tim Waterer, chief market analyst at KCM Trade.

On the domestic bourse, mining stocks soared to their highest level since April 19, climbing 1.2%, as iron ore futures in China rose on expectations of stimulus and strong demand outlook.

Mining heavyweights BHP Group, Rio Tinto and Fortescue rose between 0.5% and 1.1%.

The energy sub-index ended 0.5% higher, after rising as much as 1.5% earlier in the session.

Sector majors Woodside Energy and Santos gained 0.6% and 0.9%, respectively.

Oil prices jumped over 2% overnight as further attacks on ships in the Red Sea prompted fears of shipping disruptions.

Heavyweight financials closed 0.4% higher with the 'big four' banks all climbing between 0.1% and 0.6%.

Technology stocks rose 1.3%, tracking their U.S. peers, while gold stocks jumped 0.9% as the bullion hovered near a more-than-two-week high hit last week on U.S. rate cut bets.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose nearly 0.4% to finish the session at 11,678.43 points. (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Sonia Cheema)