* All sectors rise, financials led the gains
* Iron-ore prices one week low
* 175 shares up, 24 shares down and 5 unchanged (Adds analysis, quotes, stocks on the move)
By Pauline Askin and Ian Chua
SYDNEY/WELLINGTON, Oct 16 (Reuters) - Australian shares hit a seven-week high on Friday, led by broad-based gains in all sectors after a strong lead from Wall Street.
The S&P/ASX 200 index .AXJO gained nearly 1 percent, or 50.1 points, to 5,280.2 by 0204 GMT but is set to end the week little changed. It rose 0.6 percent on Thursday.
Investors were upbeat on heightened expectation of monetary policy easing by the central bank, but analysts said the key index was unlikely to break through key resistance at 5,300 points ahead of a raft of China economy data on Monday.
Odds on a cut in Australian interest rates narrowed on Wednesday when the country's second-largest lender sprang a surprise rise in mortgage rates, threatening to dampen home prices and consumer sentiment in an already fragile economy. urn:newsml:reuters.com:*:nL3N12E1PF
A $2.5 billion fund raising by Westpac Banking Corp WBC.AX helped ward off uncertainty for the banking sector which is battling stricter capital regulations and slowing growth. urn:newsml:reuters.com:*:nL3N12D5UT
"The banks have been quite resilient," said Julia Lee, equities analyst, Bell Direct.
Westpac's $2.5 billion rights issue "signals the end of the capital raising from the big four banks for the time being..... it's a weight lifted off the financial sector so we are seeing the banks doing quite well."
Financial stocks rose, with Commonwealth Bank CBA.AX gaining 1.8 percent, National Australian Bank NAB.AX up 1.3 percent and ANZ ANZ.AX up 0.9 percent.
Iron ore miners were mixed after prices fell to a one-week low. BHP Billiton (L:BLT) BHP.AX and Rio Tinto (L:RIO) RIO.AX fell 0.3 and 0.7 percent, respectively, while Fortescue FMG.AX was amongst the winners, rising 5.7 percent.
Gold miners Newcrest NCM.AX fared well jumping 2.25 percent.
LNG LNG.AX and Drillsearch DLS.AX were among the top gainers on the index, rising nearly 8 percent each.
Copper miner Aditya Birla Minerals Ltd ABY.AX rose as much as 44 pct to A$0.26, highest since Sept. 2014 rebounded 2.6 percent, snapping three sessions of declines. (Editing by Kim Coghill)