The Australian sharemarket climbed on Thursday despite a mixed jobs report that highlighted a resilient labour market and reduced the likelihood of imminent rate cuts from Reserve Bank of Australia (RBA) policymakers.
The S&P/ASX 200 index finished 113.7 points or 1.4% higher to close at 8,327.
All 11 sectors advanced, with banks and technology stocks leading the charge. The rally was driven by a global shift toward risk assets after softer-than-expected U.S. core consumer price index (CPI) data eased inflation concerns, while major U.S. banks including JP Morgan Chase, Citigroup, Goldman Sachs and Wells Fargo reported better-than-expected quarterly results.
In Australia, employment data surprised on the upside, with 56,300 jobs added in December compared to the forecast of 15,000. Despite this, the unemployment rate ticked up slightly to 4%, aligning with market expectations.
Wall Street's strong overnight performance, spurred by the softer U.S. core CPI reading, outweighed concerns about Australian employment data. The figures prompted speculation that the Reserve Bank of Australia might delay a rate cut in the near term.
Australia’s major banks were among the standout performers. Macquarie Group added 3.2%, ANZ gained 2.7%, National Australia Bank lifted 2.8% and Commonwealth Bank jumped 3%
Interest-rate-sensitive technology and real estate sectors also saw significant gains, with Block rallying 3.4%, Appen gaining 2.3% and WiseTech up 2.6%, while Goodman Group lifted 3.2%, Charter Hall gained 2.3% and Mirvac Group rose 2.9%.
On the bond markets, yields eased across the curve. Ten-year rates dropped 0.4% to 4.505%, while two-year yields fell 0.1% to 3.937%.
