Nov 29 (Reuters) - Australian shares dropped more than 1% to hit a near two-month low on Monday, extending losses to a second straight day, as concerns over the cases of coronavirus" Omicron variant hitting economic recovery sparked a broad sell-off. The S&P/ASX 200 index (.AXJO) fell as much as 1.36% to 7,180.3, its lowest level since Oct. 1, after a 1.73% drop on Friday. Australia on Sunday confirmed two cases of the new Omicron variant, putting the country"s reopening plans in jeopardy, as a growing number of countries report the highly infectious strain, and sparked concerns of threat to the economic recovery. read more All three major U.S. indices posted their biggest single-day falls in months on Friday, while oil prices plunged $10 a barrel to mark their largest one-day drop since April 2020. Australian banks (.AXFJ) declined 2% to hit their lowest since late-April, weighing the most on the benchmark. The country"s "Big Four" lenders also fell, with Commonwealth Bank of Australia (CBA.AX) and National Australia Bank (NAB.AX) losing 2.2% each. Travel stocks tumbled to their multi-month lows, with travel management firms Flight Centre Travel Group (FLT.AX), Webjet (WEB.AX) and Corporate Travel Management (CTD.AX) losing between 6% and 11%, while carrier Qantas Airways (QAN.AX) dropped 6%. Energy stocks (.AXEJ) were the top losers, declining as much as 4.7% to their lowest level since Sept. 21. Oil regained more than $3 in early Asia trade but major oil companies including Woodside Petroleum (WPL.AX), Santos (STO.AX) and Oil Search (OSH.AX) lost between 5% and 7%. Bucking the subdued sentiment, lithium developer Vulcan Energy (VUL.AX) rose as much as 3.2%, after signing a five-year supply deal, with Dutch automaker Stellantis NV (STLA.MI). read more New Zealand"s benchmark S&P/NZX 50 index (.NZ50) lost 0.8% to 12,533.83 as at 2348 GMT. Westpac and Australia and New Zealand Banking Group were the top losers in the index, while logistics firm Mainfreight Ltd (MFT.NZ) declined over 2%. Reporting by Harshita Swaminathan; Editing by Rashmi Aich