Australian shares rose the most in a month on Thursday as better-than-expected jobs data encouraged investors to shrug off dwindling chances of an imminent rate cut to buy blue-chip yield stocks.
After falling slightly at the open, the S&P/ASX 200 index recovered following the mid-morning data release to close up 1 per cent or 57.0 points at 5850.2, its biggest one-day advance since February 13.
New Zealand’s benchmark NZX 50 index rose 24.8 points or 0.4 per cent to finish the session at 5,886.8.
The ASX dipped at the open on concerns the US Federal Reserve would lift rates soon, but by 0111 GMT, the S&P/ASX 200 index was up 0.9 per cent or 51.1 points to 5,844.5, its biggest gain since February 18, following news Australian employment grew slightly in February, signalling that the economy is stronger than expected although curbing the chances of a rate cut very soon.
“Probably the RBA won’t cut, they’re pretty conservative,’’ said Quay Securities head of trading Tristan K’Nell, referring to figures which showed the unemployment rate fell to 6.3 per cent from 6.4 per cent, while 15,600 more people got jobs.
“(The index) has run a little bit too hard. It might be a little bit of short-covering after a few down days. Realistically, there’s not a lot of incentive and I’m expecting a pullback,’’ K’Nell added.
Banks led the index higher, with Westpac Banking Corp up 1.5 per cent and Commonwealth Bank of Australia, Australia and New Zealand Banking Group and National Australia Bank all up about 1 per cent.
Stocks exposed to consumer spending firmed, with Wesfarmers, owner of supermarket giant Coles, up 0.6 per cent and rival Woolworths up 0.3 per cent, while electronics retailers JB Hi-Fi and Harvey Norman Holdings were up 2 per cent and 1 per cent, respectively.
Mining stocks, which have been hit by a collapsed iron ore price, fell. BHP Billiton was down 0.5 per cent and Rio Tinto dropped 0.4 per cent.
Miner Whitehaven Coal jumped 8 per cent after securing a A$1.4-billion bank loan to refinance debt.