Dec 30 (Reuters) - Australian shares inched higher on Thursday, hitting their highest in more than three and a half months in thin trading volumes, as gains in banks offset losses in technology stocks.

The S&P/ASX 200 index had risen 0.1% to 7,518.6 by 2342 GMT even as surging COVID-19 infections dampened broader sentiment. On Wednesday, it had jumped 1.2% to its highest since Sept. 8 as trading resumed after a long holiday weekend.

Heavyweight financials rose as much as 0.5% to their highest since Nov. 17, driven by the so-called "Big Four" banks.

Miners edged higher 0.2% and were set for a fourth straight session of gains, with Perenti Global and Champion Iron adding 1.1% and 0.8%, respectively.

Copper miner OZ Minerals climbed 0.6% to a level last seen on June 2, 2008, boosted by strong commodity prices.

Capping gains in the benchmark index, technology stocks slipped 0.5%, dragged down by a 2% drop in buy now, pay later giant Afterpay.

Overnight, the Dow and the S&P 500 closed at all-time highs, as investors shrugged off concerns surrounding the Omicron variant. The tech-heavy Nasdaq Composite, however, slipped 0.1%.

Gold stocks in Australia declined 0.6% even as bullion prices steadied overnight. Tietto Minerals fell more than 2% and was the top drag on the sub-index.

Meanwhile, Australia is in the grip of an outbreak of the Omicron variant, with the country's new daily infections spiking to nearly 18,300 on Wednesday, eclipsing the previous pandemic high of around 11,300 hit in the previous day.

However, Prime Minister Scott Morrison has so far ruled out lockdowns, urging people to focus on the number of patients admitted to hospitals.

As 2021 draws to a close, the benchmark index is set to add nearly 14% this year and reverse losses from the pandemic-battered 2020, boosted by record-low interest rates and monetary stimulus.

New Zealand's benchmark S&P/NZX 50 index was up 0.5% at 13,000.98. (Reporting by Harish Sridharan in Bengaluru; Editing by Subhranshu Sahu)