Aussie shares surge as jobless rise spurs rate cut hope
Near midday on Thursday, the benchmark S&P/ASX200 index was up 63.3 points to 8,624.9, a gain of 0.74 per cent, while the broader All Ordinaries had gained 59 points, or 0.66 per cent, to 8,862.1.
June labour force data released by the Australian Bureau of Statistics showed employment increased by 2,000 jobs, while the unemployment rate rose to 4.3 per cent.
Consensus predictions were for 20,000 jobs to be created, and the jobless rate to stay at 4.1 per cent.
The RBA will likely cut interest rates in September following the result, AMP chief economist Shane Oliver told ABC News.
"For those looking for a black cat you get a ticket in terms of the jobs number because they were on a soft side," he said on Thursday.
"Softer jobs growth for a couple of months in a row, that is pointing to a cut coming in. Today's results will just add to expectations by money market traders and economists that we will get a cut in August. It has reinforced those expectations."
Betashares chief economist David Bassanese said an August rate cut would be a "slam dunk" unless second-quarter inflation data is higher than expected.
The Australian share market, which was already back in the green after one of its worst sessions since in early May on Wednesday, surged following the release of the jobs report.
The Australian dollar meanwhile dropped to a 23-day low, trading for 64.78 US cents, from 65.25 US cents at close of business on Wednesday.
In the US overnight, US President Donald Trump retreated from talk of firing Federal Reserve chair Jerome Powell.
Wall Street rocked as the story unfolded but bounced back by the market's close, with the S&P500 finishing up 0.3 per cent.
Every ASX sector was in the green at midday, with property the biggest gainer, rising 1.2 per cent. Goodman Group had added 1.2 per cent and Scentre Group had climbed 1.6 per cent.
Miners also rebounded with 16 of the top 20 stocks back in the green, including BHP's 0.56 per cent gain, Rio Tinto rising 0.98 per cent and Fortescue up by 0.5 per cent.
Superfund Australian Ethical was up 3.2 per cent after the investment management company announced it had delivered 34 per cent growth in funds under management, to a record high of $13.94 billion.
All the big four banks had also gained, with both the CBA and Westpac up 1.2 per cent, NAB climbing 0.86 per cent and ANZ rising 0.75 per cent.
Shares in Carsales' parent company, CAR Group, took a 2.3 per cent hit after CEO Cameron McIntyre stood down following a nine-year tenure in the top job.
The Australian dollar was trading for 64.78 US cents, from 65.25 US cents.
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