The Australian sharemarket finished modestly higher on Thursday after a stronger-than-expected employment report reinforced expectations of further Reserve Bank of Australia interest rate hikes, while gains in mining and energy stocks offset weakness in the technology sector.
The S&P/ASX 200 Index rose 16.0 points, or 0.2%, to 8,839.0, with five of the 11 sectors closing higher.
Investor sentiment turned more cautious after Australian labour market data showed 76,000 jobs were created in June, far exceeding market expectations for a gain of 15,000, while the unemployment rate remained steady at 4.4%.
The stronger employment report lifted the Australian dollar 0.4% as traders increased expectations that the RBA will raise interest rates again to contain inflation.
The Materials sector led the market higher, with major miners advancing as commodity prices strengthened. BHP rose 1.5%, Rio Tinto gained 0.5%, and Fortescue added 1.0%.
Gold miners also benefited from elevated bullion prices, with Northern Star Resources and Evolution Mining each rising 1.9%, while Newmont gained 0.9%.
James Hardie jumped 6.1% after upgrading its quarterly sales guidance to between US$1.449 billion and $1.475 billion for the three months to June.
The Energy sector also advanced as oil prices climbed to six-week highs on escalating tensions in the Middle East. Woodside Energy gained 0.5%, while Beach Energy rose 1.1%.
Santos finished little changed after narrowing its 2026 production guidance to 99 million to 105 million barrels of oil equivalent, reflecting the continued ramp-up of its Barossa and Pikka projects following commissioning delays.
Uranium stocks outperformed the broader market, with Paladin Energy surging 11.6% and Deep Yellow climbing 5.6%.
Technology was the weakest-performing sector as investors rotated away from growth stocks amid rising bond yields. Xero fell 5.0%, WiseTech Global dropped 7.0%, and TechnologyOne lost 3.7%.
Among individual stocks, Generation Development Group soared 37.1% to lead gains on the ASX after the wealth management platform reported record quarterly sales and a 36% increase in funds under management to A$46.4 billion during FY2026.
On the bond markets, Australian government yields moved higher, with the 10-year yield rising to 4.993% and the two-year yield increasing to 4.616%.
