Australian stocks extended early gains on Thursday, reversing the losses from the prior session as investors took broadly positive cues from Wall Street. The benchmark S&P/ASX 200 moved above the 7,900 mark, rising 1.11% to 7,915.20, with gains spread across most sectors and leadership coming from gold miners, financials and technology.
The All Ordinaries Index climbed 1.11% to 8,144.60, after touching an intraday high of 7,919.40 for the S&X 200. Traders largely attributed the rebound to improved sentiment in offshore markets, while company-specific catalysts continued to drive parts of the market.
Key takeaways
- Price move: The S&P/ASX 200 rose 1.11% to 7,915.20, with most sectors in positive territory.
- Catalyst: Markets took positive cues from Wall Street and investors reacted to several corporate headlines, including regulatory approvals and progress on major transactions.
- Implication: Strength in gold-linked equities and selected tech names suggested investors were selectively positioning ahead of upcoming macro data and earnings momentum.
- Economic backdrop: Australia’s unemployment rate held at 4.1% in February, but jobs fell more than expected, keeping pressure on perceptions of labor-market momentum.
What drove the move
Sector performance showed a split between commodities and pockets of growth. Gold miners and select resources stocks supported the index early. Newmont and Resolute Mining edged up around 0.5% each, while Northern Star Resources and Evolution Mining gained close to 3% each. Gold Road Resources rose nearly 2%.
Not all resource-linked names participated. Rio Tinto and BHP Group were down nearly 1% each, with Fortescue Metals slipping more than 2% and Mineral Resources losing more than 1%. Oil stocks were mixed, with Santos and Origin Energy up about 1% each, while Beach Energy fell more than 1% and Woodside Energy declined nearly 1%.
Market reaction: banks, tech and standout winners
Australia’s big banks contributed to the breadth of gains. Commonwealth Bank, Westpac and ANZ Banking were up close to 2% each, while National Australia Bank rose about 1.5%.
Technology stocks also delivered momentum. Block, the owner of Afterpay, gained more than 4%. WiseTech Global rose more than 2%, while Xero and Appen advanced more than 1% each. Zip was flat.
Several single-name moves underscored that investors were balancing broad index exposure with company-specific news flow:
- Nanosonics: Shares jumped more than 13% after US regulators approved its cleaning tool for endoscopes, aimed at reducing infection risk in hospitals.
- TPG Telecom: The stock surged almost 5% after Australia’s competition watchdog approved the company’s $5.25 billion sale of its fibre networks to Vocus Group.
- Arafura Rare Earths: Shares rose nearly 12% following a binding five-year offtake agreement to supply 100 tonnes per year of neodymium-praseodymium oxide to Traxys Europe SA.
Economic signals: unemployment steady, jobs weaker
Macro data offered support for the market’s direction, but the details pointed to a slower labor-market trend. Australia’s unemployment rate was 4.1% in February (seasonally adjusted), according to the Australian Bureau of Statistics, matching expectations and unchanged from January.
However, the report also showed the economy lost 52,800 jobs last month, well below expectations for an increase of 30,800 jobs after January’s gain of 44,000. Full-time employment fell by 35,700 following an increase of 54,100 in January. The participation rate slipped to 66.8%, missing forecasts for 67.3% and lower than the prior month’s level.
While a stable unemployment rate can reduce immediate concerns over recession risk, the weaker jobs print and lower participation may influence how investors gauge the trajectory for wages, consumer demand and the broader inflation outlook—factors that typically feed into expectations for interest rates.
Bigger picture: currency and what to watch next
In foreign exchange, the Australian dollar was trading at $0.634 on Thursday.
With the index holding above 7,900, investors will likely watch whether the early rebound can sustain as trading progresses and as market participants digest the mixed labor-market signals. Next, attention should turn to additional data releases and company updates that could reinforce or challenge the current sector leadership, especially in financials, gold-linked stocks and parts of technology.
