ASX200 closes 0.5% higher
Miners up 1.2%, tech rises 2.9%, gold down 1.1%
Beach Energy down 4.3%
(Updates to close)
Australian shares closed higher on Thursday, tracking strong overnight gains on Wall Street, while an unexpected dip in the country's employment for April reinforced bets of a pause in rate hikes by the central bank at its meeting next month.
The S&P/ASX 200 index (xjo) gained 0.5% to close at 7,236.80 points. The benchmark ended 0.5% lower on Wednesday.
Employment unexpectedly dipped in April, and the jobless rate also ticked up in a sign the red-hot labour market might be cooling, bolstering the case for a pause in rate hikes next month, Australian Bureau of Statistics' data showed on Thursday.
"It has been a second softer day of economic data, showing the labour market is cooling. This does not mean that there won't be more rate hikes coming potentially in July or August, but at least for the short term, data that came out does reduce some of the risks of RBA raising rates again," said Tony Sycamore, analyst at IG Australia.
Meanwhile, U.S. stocks rose sharply on Wednesday, fuelled by optimism over a potential deal on the $31.4 trillion federal debt ceiling.
In Sydney, miners .AXMM finished 1.2% higher. Nufarm Ltd (NUF) was the top gainer on the benchmark after rising 14.2% on higher half-year profit.
Technology stocks .AXIJ advanced 2.9%, tracking gains from U.S. tech-heavy Nasdaq. Xero Ltd (XRO) rose 8.9% to hit a one-year high after posting strong annual earnings.
Among individual stocks, Beach Energy Ltd (BPT) fell 4.3% after it warned of delays in constructing the Waitsia Gas plant.
Heavyweight financials sub-index .AXFJ gained 0.7%, with so-called 'big four' banks up between 0.2% and 0.9%
Gold stocks .AXGD inched 1.1% lower as U.S. debt-ceiling talks chipped away at the metal's safe-haven appeal. Newcrest Mining (NCM) lost 1%.
New Zealand announced a worse-than-forecast budget deficit as a slowing economy and a lower tax take hit at its coffers.
The benchmark S&P/NZX 50 index (nz50) rose 0.2%, to close at 11,976.08.
