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By Rajasik Mukherjee

July 17 (Reuters) - Australian shares notched a record high on Thursday, helped by gains in index heavyweight banks, as weaker-than-expected jobs data stoked bets for an interest rate cut next month.

The S&P/ASX 200 index .AXJO rose 0.9% to 8,639, logging a record closing high. Earlier in the session, the benchmark touched a new peak of 8,641.3 points.

Australia's jobless rate climbed to its highest level since late 2021 in June, while the economy added just 2,000 jobs — well below market expectations of a 20,000 rise, data showed.

The surprisingly soft data strengthened market bets that the Reserve Bank of Australia could cut interest rates as early as next month.

About 90% of the market expects the central bank to cut rates at its August 12 meeting, the RBA rate tracker showed.

Earlier in July, the RBA clung onto its interest rate in a move that surprised many, saying the majority of the board wanted to wait for more information to confirm inflation was easing sustainably.

"Today's surprisingly weak jobs data has cemented market conviction that the RBA's next move is a cut, effectively giving a green light to risk assets," said Anthony Doyle, chief investment strategist at Pinnacle Investment Management.

On the local bourse, financials .AXFJ led the charge by rallying 1.3%. The "Big Four" banks gained between 1% and 1.6%.

Lower borrowing costs typically spur credit demand and support sector profitability, as investor sentiment improves when monetary policy turns more supportive.

Among other rate-sensitive stocks, real estate firms .AXRE gained 1.4%, with property giant Goodman Group GMG.AX rising 1%.

Health stocks .AXHJ rose 0.8% and IT stocks added 1%, lending further support to the benchmark.

Mining stocks .AXMM ended flat, while energy firms .AXEJ eked out marginal gains. Oil and gas major Santos STO.AX closed little changed as it tightened its full-year production forecast.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended the session 1.2% higher at 12,905.41.

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu)

((Rajasik.Mukherjee@thomsonreuters.com))

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