* Australia benchmark ends 2nd week up but loses over 3% in August
* Banks, miners lead ASX
* NZ ends more than 1% higher (Updates to close)
Aug 30 (Reuters) - Australian shares climbed more than 1% on Friday, led by gains in miners and banks as investors were cheered by signs of a thaw in stalled Sino-U.S. trade talks.
Australia's S&P 200 index .AXJO closed higher for a second straight week. It climbed 1.5%, or 96.8 points, to end at 6,604.2 on the day.
China's commerce ministry said a September round of meetings was being discussed with Washington, but added it was important for Washington to cancel a tariff increase. MKTS/GLOB
Investors also looked to China's official manufacturing survey, expected over the weekend, which would provide a good gauge of the real impact from the Sino-U.S. trade war.
However, Australia's benchmark saw its worst monthly loss since October and fell over 3% in August, a month dominated by several trade war flare-ups and global recessions fears.
Positive trade salvo helped mining stocks .AXMM tack on 1.6% for the day.
Resources, especially iron ore, is the top revenue-earner for Australia as China is the biggest buyer of these exports. The country's commodities firms are thus sensitive to developments in U.S.-China trade talks.
Iron ore miners BHP Group Ltd BHP.AX , Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals FMG.AX rose between 2.2% and 4.2%.
Heavyweight banking stocks .AXFJ led gains on the main index, with the "Big Four" notching up between 1% and 2.1%.
High-growth technology units .AXIJ also ended nearly 2%higher, mirroring trade-sensitive Wall Street peers. .N
Buy-now-pay-later firm Afterpay Touch Group Ltd APT.AX closed at a record high, after stellar U.S. growth numbers it posted this week provided added impetus. healthcare stocks also benefited from improved risk sentiment, with biotherapeutics firm CSL Ltd CSL.AX and hearing implant maker Cochlear Ltd COH.AX jumping 2.3% and 2.2%, respectively.
While signs of easing trade tensions placated recession fears, it weighed on the safe-haven appeal of gold stocks .AXGD and sent them 0.9% lower, the only sector that ended in the red.
Gold miner Evolution Mining EVN.AX declined 1%.
Across the Tasman Sea, New Zealand's benchmark index .NZ50 surged 1.7%, or 177.13 points, to 10,757.2. It added 1.3% this week, its best weekly gain since late June.
Vista Group International Ltd VGL.NZ , a software developer for the film industry, added 4.9% and was the top gainer on the benchmark.