Jan 24 (Reuters) - Australian shares rose on Friday, eyeing its best week in a month, as financial and real estate stocks lifted the benchmark index, while investors exercised caution ahead of a key inflation report next week.

The S&P/ASX 200 index .AXJO rose 0.4% to 8,410 points by 0010 GMT. The benchmark is set to log a weekly rise of 1.2%, its best since Dec. 23. It posted a 0.6% fall on Thursday.

Markets await fourth-quarter inflation data due on Jan. 29 that would provide clues on the Reserve Bank of Australia's monetary policy stance.

Banking stocks .AXFJ, which account for nearly a quarter of the benchmark, rose 0.5%, with all "Big Four" banks gaining between 0.3% and 0.6%. Higher-for-longer interest rates, while benefitting banks, slow credit growth and impact borrowers' mortgage-paying capacity. The subindex is set to log a 3.2% rise this week, its best since Dec. 23.

Real estate stocks .AXRE added to the gains, rising 1.1%, with top property developer Goodman Group GMG.AX surging 2%. Analysts remain upbeat on the sector as rate cut prospects are expected to encourage consumers' appetite for mortgages.

Consumer discretionary stocks .AXDJ also moved on the same sentiment to gain 1.7%, with Wesfarmers WES.AX advancing 2.7%. Interest rate cuts should further encourage spending, especially in by mortgage-constrained households, according to analysts. The sector eyes a 1.8% gain this week, its best since Dec. 23.

Heavily weighted mining stocks .AXMM lost 0.3%, with sector majors BHP BHP.AX and Rio Tinto RIO.AX falling 0.2% and 0.4%, respectively. Miners are set to log a near 2% loss this week, snapping a four-week rally.

U.S. President Donald Trump's tariff plans on Chinese imports threaten demand for commodities including iron ore, which could adversely impact Australia's resource-heavy economy.

New Zealand's S&P/NZX 50 index .NZ50 was little changed at 13,047.89 points. The benchmark is set for a weekly loss of 0.6%, its worst since Jan. 6.

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Alan Barona)

((Nikita.Jino@thomsonreuters.com))

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