March 21 (Reuters) - Australian shares settled slightly lower on Monday after a volatile session of trading, as China's central bank dashed hopes for an interest rate cut and the war in Ukraine raged on.

The S&P/ASX 200 index closed down 0.2% at 7,278.50, after rising 0.8% earlier in the session.

The People's Bank of China kept its benchmark interest rate unchanged, even after a pledge by the government last week to support the domestic economy and financial markets.

"Markets were hoping for stimulus from China and it seems that may take some time. Investors were hoping for a rate cut and that did not happen," said Mathan Somasundaram, chief executive officer at DeepData Analytics.

"China is unlikely to stimulate their economy while doing limited lockdowns to control COVID spread."

In Australia, asset manager Magellan Financial was one of the top losers on the benchmark. The stock closed nearly 4% lower after co-founder Hamish Douglass resigned from the company's board.

Among sectors, technology was the top gainer. The sub-index closed 2.5% higher, mirroring the robust performance of Wall Street peers on Friday. ASX-listed shares of Block Inc climbed more than 9%, while battery materials maker Novonix rose 8%.

Miners rose after iron ore logged its fourth weekly gain on Friday, while energy stocks closed higher on stronger oil prices as European Union nations considered joining the United States in banning Russian oil.

On the downside, gold stocks slid 2% after the metal posted its biggest weekly drop in nearly four months on Friday. Heavyweight Newcrest Mining fell 2.5%.

"The gold sector will recover as the U.S. Fed rate hike cycle is likely to be slower than inflation rise in the next three-six months," Somasundaram said.

New Zealand's benchmark S&P/NZX 50 index ended 0.02% higher at 12,177.75. (Reporting by Arundhati Dutta in Bengaluru; Editing by Subhranshu Sahu)