* BHP hits over 10-mth high, Rio highest since 2008

* Fortescue Metals hits record high

* Macquarie slips on Waddell & Reed Financial buy for $1.7 bln

* Qantas says will reach 68% of pre-COVID capacity in Dec

Dec 3 (Reuters) - Australian shares rose on Thursday as miners almost single-handedly lifted the index, buoyed by a rally in iron ore prices and a downgraded full-year iron ore forecast by Brazilian mining rival Vale.

Rising iron ore prices owing to a strong demand for the steel-making ingredient in China, Australia's top trading partner, had Aussie miners extending gains into a third session, jumping 3.4% to over three months high.

BHP Group hit an over 10-month high, Rio Tinto surged to its highest since May 2008, and Fortescue Metals Group hit a record high on rising iron ore prices and lowered full-year iron ore forecast by Brazilian rival Vale SA, expected to benefit the Aussie miners.

The S&P/ASX 200 index rose 0.4% to 6,616.8 by 2330 GMT, on track for its third straight gain session.

Among losers, financials were down 0.3% with three of the four top banks trading in the red.

Conglomerate Macquarie Group declined 0.7% on acquisition of U.S.-based investment management firm Waddell & Reed Financial Inc for $1.7 billion.

Qantas Airways said the reopening of Australian state borders would boost its financial position and allow it to return to 68% of pre-pandemic domestic capacity in December, and nearly to 80% in the March quarter. However, shares slipped up to 1.1%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index edged lower, after advancing up to 0.4% in the early trade.

Gains in financials and utilities were offset by healthcare firms.

Meanwhile, New Zealand's building consents in October rose a seasonally adjusted 8.8%, compared with a 3.6% rise in the previous month. (Reporting by Sameer Manekar in Bengaluru; Editing by David Gregorio)