Rate-sensitive financials up 0.7%
Bets of Feb rate cut now at 72%
New Zealand benchmark falls 0.6%
Updates to close
By Nichiket Sunil
Jan 30 (Reuters) - Australian shares extended gains on Thursday as a benign inflation print a day ago propelled most sectors higher, with banks leading the rise on expectations of an early interest rate cut.
The S&P/ASX 200 index .AXJO closed up 0.6% to 8,493.7, after having risen 0.8% to a record high earlier in the day.
Australia's annual trimmed mean gauge of consumer prices rose 3.2% in the December quarter, data showed on Wednesday, less than an expected 3.3% climb. The benchmark index closed 0.6% higher following the print.
Rate-sensitive financials .AXFJ extended gains from the previous session, rising 0.7% as lowered rates are expected to boost lending and drive up interest incomes.
"You'll see demand for mortgages increase, so that is going to push property prices up, boosting earnings for banks", said Jessica Amir, a market strategist at Moomoo.
Commonwealth Bank of Australia CBA.AX, the country's largest lender and one of the "Big 4" banks, gained 1%. National Australia Bank NAB.AX, Westpac WBC.AX, and ANZ ANZ.AX rose between 0.2% and 1%.
All four banks now expect the Reserve Bank of Australia to cut rates in February, with swaps now implying a 72% chance of a quarter-point easing. 0#AUDIRPR
Consumer discretionary stocks .AXDJ closed at a record high, adding 1.1%, with Aristocrat Leisure ALL.AX rising 3.7%.
Miners .AXMM also gained 0.5%, with additional support from rising copper prices. BHP BHP.AX gained 0.9%, while rival Rio Tinto RIO.AX added 0.7%.
Energy stocks RIC rose 1.2%, with Karoon Energy KAR.AX adding 7.7% after posting strong quarterly sales. Oil and gas producer Woodside Energy WDS.AX closed 0.7% higher.
Healthcare .AXHJ and Staples .AXSJ rose 0.6% and 1% respectively, while technology stocks .AXIJ edged up 0.2%.
Bucking the trend, fintech firm Zip ZIP.AX plunged 25.4%, after reporting weaker-than-expected second-quarter earnings.
New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.6% lower to finish the session at 12,928.38.
(Reporting by Nichiket Sunil in Bengaluru; Editing by Varun H K)
((Nichiket.Sunil@thomsonreuters.com;))
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