Australian shares eked out modest gains on Wednesday, led by financials and real estate stocks, while traders assessed the impact of a hotter-than-expected U.S. consumer inflation print on rate cut bets.

The S&P/ASX 200 index closed 0.2% higher at 7,729.400.

Data released late on Tuesday showed U.S. consumer prices - a key metric in measuring inflation - came in slightly hotter than expected.

However, the data failed to dampen investors' spirits about a potential U.S. rate cut in June. Market expectations for a rate reduction in June currently stand at around 67%, slightly below 70% a week ago, according to the CME FedWatch Tool.

"Central banks are in data–dependent mode. Absent a new inflationary shock, we can be reasonably sure that the next move in rates will be down for most central banks across advanced economies," Luci Ellis, chief economist at Westpac, said in a note.

Ellis expects the Australian central bank to cut rates in September and deliver another reduction in November.

In Sydney, financials gained 0.9%, with National Australia Bank, ANZ Group, and Westpac Banking Corp advancing between 1.7% and 1.8%.

Real estate and consumer stocks rose 1.04% and 0.1%, respectively, with Goodman Group gaining 2.5% and Wesfarmers rising 1.5%.

The heavyweight mining sector shed 0.9%, hitting its lowest level since Oct. 23, as iron ore prices continue to decline due to weak China demand.

U.S.-based gold miner Newmont Corp's local shares were among the top losers on the benchmark, declining 3%. Iron ore miners Fortescue and BHP Group lost 1% and 1.3%.

Liontown Resources gained the most on the benchmark, ending 6.1% higher, after the lithium developer entered a A$550 million ($363.7 million) debt facility to expand its lithium project in Western Australia.

New Zealand's benchmark S&P/NZX 50 index lost 0.2% to finish the session at 11,809.0200. ($1 = 1.5124 Australian dollars) (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sonia Cheema)