* ASX 200 up on broad-based gains
* Heavyweight iron ore miners cap some gains
* Fuel pump operators lead declines on ASX 200 (Updates to close)
June 20 (Reuters) - Australian shares ended at a more-than 11-year high on Thursday as signs the U.S. and local central banks could cut rates as soon as next month reinforced demand for stocks, although weakness in the resource sector capped broader gains.
The S&P/ASX 200 index .AXJO rose 0.6%, or 39.3 points, to 6,687.40 at the close of trade. The benchmark rose 1.2% on Wednesday.
Global equity markets surged after the U.S. Federal Reserve signalled possible rate cuts this year. Meanwhile, stark comments from the Reserve Bank of Australia (RBA) governor led many to believe another policy easing could occur as soon as July. MKTS/GLOB RBA had cut its benchmark rate earlier in June citing benign economic growth, bolstering equity markets. stocks served as the biggest boost to the benchmark, with the country's big four banks closing 0.2% to 0.7% higher. The subindex .AXFJ closed up 0.8%.
While an interest rate cut may hurt the margins of banks, who have been instructed to pass it on to customers in full, many believe that the easier lending rates will increase lending volumes for the banks.
Defying the bullish mood, heavyweight iron ore miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX closed 0.3% and 4% lower, respectively, on the prospect of lower iron ore prices in the near term.
Vale SA VALE3.SA , the world's largest iron ore miner, dispelled concerns over a potential shortfall in iron ore supply after it flagged plans to resume operations at its Brucutu mine and reaffirmed its 2019 sales guidance. which is the second largest stock on the ASX 200 after BHP, was the third-biggest intraday loser after it cut its guidance on volumes of iron ore it expects to ship from Australia's mineral-rich Pilbara region. pump operator Caltex Australia CTX.AX and Viva Energy Group VEA.AX were the two largest intraday decliners on the benchmark after Caltex flagged a substantially weaker operating profit, due to a slowdown in local economic growth.
Caltex closed down more than 13%, at its weakest in nearly 5 years, while Viva dropped 8%.
New Zealand shares ended slightly weaker as the prospect of a rate cut in the country diminished with a steady showing in its first-quarter GDP.
The benchmark S&P/NZX 50 index .NZ50 fell 0.1%, or 14.07 points, to finish the session at 10,290.76, with consumer stocks weighing the most.
A2 Milk ATM.NZ closed about 0.8% down, while casino operator Skycity Entertainment Group SKC.NZ shed 1.1%.