* Mining shares fall due to slump in base metals prices

* Gold stocks hit one-month high

* Western Areas agrees to revised takeover offer from IGO

April 11 (Reuters) - Australian shares closed higher amid choppy trade on Monday, as gains in banks on the prospect of improving margins outweighed weakness in heavyweight mining stocks.

The S&P/ASX 200 swung between gains and losses through the session, and closed up 0.1% at 7,485.2.

Investors' caution persisted as they weighed likely imminent rate hikes by global central banks amid inflationary pressures and heightened Russia-Ukraine conflict.

The mining index shed 0.4%, with global miner Rio Tinto and BHP sliding 1.6% and 0.6%, respectively.

The sectoral sub-index tracked base metals' prices that declined after the U.S. dollar strengthened and COVID-19-led lockdowns in China raised concerns around demand.

"While commodity prices have rallied significantly due to the Russia-Ukraine conflict this year, the market dynamics seem to be shifting each passing day," Kalkine Group CEO Kunal Sawhney said.

"The recent slump in iron ore prices due to COVID-19-related measures in China confirms the same."

Energy stocks slipped about 0.2% as oil prices fell upon release of emergency reserve inventories in the face surging fuel prices due to the Russia-Ukraine conflict.

Sector major Woodside Petroleum dropped about 1.3%.

Financial stocks, however, added 0.8%, as banks benefited from the prospects of rate hikes by the Reserve Bank of Australia and more policy tightening by the U.S Federal Reserve.

Citi forecast domestic banks' margins would likely return to pre-pandemic levels due to the hikes in Australia. The "Big Four" lenders added 0.8%-1.4%.

Gold stocks gained as much as 2.5% to hit a one-month high as safe-haven demand rose following the developments around the Ukraine crisis.

Nickel miner Western Areas rose as much as 5.8%, hitting a near three-year high, after agreeing to a revised takeover offer from nickel-lithium miner IGO. Shares of IGO added 5.8%.

New Zealand's benchmark S&P/NZX 50 index dropped 1.1% to end at 11,932. (Reporting by Archishma Iyer in Bengaluru; editing by Uttaresh.V)