Developers and banks gain BHP drops post WA nickel ops...

	  Developers and banks gain 

	  BHP drops post WA nickel ops suspension 

	  NZ50 at 17-month high 

(Updates to close)

Australian shares hit record highs on Friday, led by banks, after data showed weaker-than-expected June U.S inflation and helped firm bets of an interest rate cut in September by the Federal Reserve.

The S&P/ASX 200 index (xjo) hit an all-time high of 7,969.1 during the session, but trimmed some gains to log a record closing high of 7,959.3 points, 0.9% higher, at the end of trade.

U.S. consumer prices fell unexpectedly in June, boosting odds of a 25-basis-point rate cut in September to 85%, according to CME FedWatch. A Fed rate cut would impact the Reserve Bank of Australia's rate-cut stance as well.

Australian banks .AXFJ rose for a fourth consecutive session and were among the major gainers on the benchmark. They ended 1% higher at a record-high close, driven by a 1.8% rise in National Australia Bank (NAB) .

The index gained 3.03% in the four sessions. "Banks also benefit from a healthier economy and expectations of lower interest rates as these can boost investor appetite and desire for loans," said Tim Waterer, KCM Trade's chief market analyst.

Property developers Goodman Group (GMG) , Scentre Group (SCG) and Stockland Corp (SGP) closed higher between 0.4% and 3%.

Core Lithium (CXO) jumped 12.5%, leading the gains among miners .AXMM , which rose 0.5% on higher commodity prices. Rio Tinto (RIO) and Fortescue (FMG) closed the day 0.2% and 0.4% higher, respectively.

However, BHP Group (BHP) fell 0.4% after it announced a temporary suspension of its nickel business in Western Australia amid a price plunge and oversupply issues.

Australian consumer stocks were also up on rate-cut possibilities. Electronics retailer Harvey Norman (HVN) and home entertainment retailer JB Hi-Fi (JBH) added 2.4% and 1.3%, respectively.

Tech .AXIJ dropped 1.2%, tracking U.S. stocks, which ended lower overnight after a drag in large-cap technology firms. Australian stock transfer company Computershare (CPU) and software maker WiseTech Global (WTC) lead losses in the index, falling 3.9% and 3.4%, respectively.

New Zealand's benchmark S&P/NZX 50 index (nz50) rose 0.6% to a near 17-month high. The index logged best week since early November, with a 2.9% gain.