The Australian sharemarket rallied on Thursday as weaker-than-expected labour market data fuelled hopes the Reserve Bank of Australia (RBA) may not need to tighten monetary policy further, while easing geopolitical concerns also lifted sentiment.
The S&P/ASX 200 Index climbed 125.1 points, or 1.5%, to close at 8,621.7, with eight of the 11 sectors finishing higher.
Investor confidence improved after United States President Donald Trump said Washington was in the “final stages” of negotiations with Iran, helping drive oil prices sharply lower overnight and easing concerns about inflationary pressures linked to the Middle East conflict.
The Materials sector led the market higher as heavyweight miners advanced; BHP gained 3.1%, Rio Tinto added 3.2%, and Fortescue rose 0.5%.
Gold miners delivered a mixed performance despite spot gold rising 1.4% overnight.
Northern Star Resources fell 2.1% after announcing managing director Stuart Tonkin would step down during the first quarter of the next financial year, following 13 years in the role.
Evolution Mining climbed 3.8%, and Newmont gained 2.2%.
James Hardie surged 5.4% as investors continued to assess the building products company’s full-year results released in the previous session.
Rate-sensitive real estate investment trusts also supported the market as softer employment data reduced fears of further rate hikes.
Goodman Group rose 2.8%, Charter Hall gained 2.5%, Stockland advanced 2.8%, and Mirvac added 2.4%.
The Financial sector also posted broad gains, with Commonwealth Bank rising 0.9%, NAB adding 2.3%, Westpac climbing 2.2%, and ANZ lifting 1.6%.
Energy stocks were mixed following a 5% retreat in crude prices overnight.
Santos edged 0.5% higher, while Woodside Energy fell 2.1%, Beach Energy lost 2.2%, and Viva Energy slipped 1.7%.
Among individual stocks, Zip Co rallied 2.7% after confirming it had secured the right to continue using the Zip brand in Australia following a trademark settlement with Firstmac.
IperionX jumped 5.2% after commissioning a 300-tonne six-axis SACMI powder metallurgy press at its titanium manufacturing campus in Virginia, targeting increased demand from the defence and aerospace sectors.
On the economic front, Australia’s unemployment rate unexpectedly rose to 4.5% in April, above expectations for a steady 4.3% result.
The economy also shed 18,600 jobs during the month, compared with market forecasts for an increase of 15,000 positions.
Bond yields moved lower following the data release, reflecting expectations that the Reserve Bank may remain cautious on further tightening.
Australia’s 10-year government bond yield fell 1% to 4.968%, while the two-year yield declined 1.4% to 4.621%.
