Australian shares notch record closing high as jobless spike fuels rate-cut bets

[SYDNEY] Australian shares rose to a record close on Thursday (Oct 16), driven by strong gains in financials, property and gold stocks after an unexpected spike in unemployment bolstered views of an interest rate cut next month.

The S&P/ASX 200 index climbed 0.9 per cent to 9,068.4. It rose to a record of 9,109.70 earlier in the day, crossing the 9,100 mark for the first time.

Labour market data showed the unemployment rate in September jumped to its highest in nearly four years, raising bets of a November rate cut to about 72 per cent from 40 per cent before the data.

However, the Reserve Bank of Australia will be scrutinising the quarterly inflation report due later this month before taking a call on its key cash rate.

Financials rallied more than 1 per cent to a record close, with financial conglomerate Macquarie Group rising 5.1 per cent to its highest close since late August after a US$40 billion AI data centre deal with an investor group comprising BlackRock, Microsoft and Nvidia.

ANZ Group, the country’s no 4 lender by market value, rose to its highest close in more than a decade after soaring to an all-time high earlier in the day.

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Lower interest rates would directly contribute to a significant improvement in mortgage demand and lending activity, which explains the enthusiasm around banks, said Jessica Amir, market strategist at moomoo.

Real estate stocks, sensitive to interest rates that affect both consumer demand and developers’ access to financing, jumped 2.8 per cent to log their best session since April.

Sector heavyweights Goodman Group and Mirvac rose 5 per cent and 3.5 per cent, respectively.

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Australia: Financials, gold stocks help shares notch 6-week high

Gold miners advanced 2.2 per cent to notch a record close as bullion extended gains on safe-haven flows.

Healthcare, energy, and consumer staples stocks gained up to 1 per cent each.

In New Zealand, the S&P/NZX 50 rose 0.6 per cent to 13,389.1. REUTERS