* Financials close at their highest since April 2022

* Liontown slumps 21% to lowest close since mid-July 2022

* Tech stocks hit highest level in more than four months

Jan 22 (Reuters) - Australian shares closed higher on Monday, driven by gains in heavyweight financials and technology stocks, while Liontown Resources fell sharply after flagging a potential delay to the planned expansion of a flagship lithium project.

The S&P/ASX 200 index ended 0.8% higher at 7,476.60, its highest close in a week.

Banks were the primary driver of gains, rising 1.2% to post their highest close since April 2022, as recent economic data raised hopes for an end to the hiking cycle by major global central banks, with markets now focussed on the interest rate cut timeline.

Reduced rate hike fears have seen the financial sector notch up gains, said Tim Waterer, chief market analyst at KCM Trade, adding that the softer Australian jobs report from last week had eased fears of further rate increases.

Analysts widely expect the Reserve Bank of Australia to keep its key cash rate unchanged at a policy meeting early next month.

The central bank is not expected to deliver its first rate cut until November this year, with total easing predicted at a modest 33 basis points for this year.

The "Big Four" banks climbed between 0.9% and 1.3%.

Tech stocks tracked their Wall Street peers higher, closing 0.7% higher. Earlier in the day, they hit their highest level since early September last year.

Block's Australian shares gained 3.3%, while WiseTech Global advanced 1%.

Meanwhile, miners eased 0.4%. Liontown was the top loser in the bourse, tumbling 21.3% to its lowest close since mid-July 2022 on a potential delay to the expansion of its Kathleen Valley lithium project.

Lynas Rare Earths ended 2% lower after hitting its lowest since July 2021, as the company posted a sharp decline in second-quarter revenue.

Diversified miner South32 fell 2.8%, as its quarterly coal and manganese output missed estimates.

New Zealand's benchmark S&P/NZX 50 index rose 0.2% to 11,684.95. (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Subhranshu Sahu)