May 9 (Reuters) - Australian shares closed at their lowest in nearly two months on Monday, as Shanghai's tightening COVID-19 curbs sparked worries about economic growth and a possible recession, while Westpac Banking jumped on an upbeat outlook.

The S&P/ASX 200 index ended 1.2% lower at 7,120.60, marking a second straight session of losses.

In New Zealand, the benchmark S&P/NZX 50 index dropped 2% to 11,381.70, its lowest since Aug. 12, 2020.

Shanghai was tightening a city-wide COVID-19 lockdown imposed more than a month ago, prolonging into late-May an ordeal that China's capital Beijing was desperate to avoid by turning mass testing into an almost daily routine.

Investors also remained concerned about aggressive policy tightening by global central banks, with a focus on U.S. consumer prices data on May 11 to gauge further actions on interest rates by the Federal Reserve.

"I think (Philip) Lowe (the governor of the Reserve Bank of Australia) will only go by 25bps (basis points) at a time and we will get another rate rise in June, but the wage number will be all important," Henry Jennings, senior analyst at Marcustoday Financial Newsletter said

Among individual shares and stocks, Westpac Banking gained 3.2% in its best day since March 10 after the country's third-largest bank beat first-half earnings estimates and forecast lower expenses in the second half of the year.

The metals and mining index slipped 2.5%, to their lowest level since March 17 on a slide in iron ore prices.

With China being the biggest customer to Australia, more lockdowns and a slowdown in the world's second-largest economy is not great news, Jennings said.

The mining trio BHP Group, Rio Tinto and Fortescue Metals Group dropped between 1.3% and 5.8%.

Financials shed 0.3%, with Australia and New Zealand Banking Group falling 2.7%, while two of the "Big Four" banks capped losses to rise about 0.2%.

Bucking the trend, energy stocks added 0.5%. Woodside Petroleum and Santos rose 0.6% and 0.4%, respectively.

(Reporting by Upasana Singh in Bengaluru; editing by Uttaresh.V)