You are here

Australia: Shares close at record highs

doc79dahl0j944l2gwt3sf_doc6u463myj92e1m8lm3sp.jpg
The S&P/ASX 200 index closed 0.3 per cent higher at 7,162.5 but fell off from the session high.

[SYDNEY] Australian shares ended Thursday at a record peak as China ramped up support for its virus-hit economy, while domestic employment and wage data suggested further monetary easing could be on the cards.

The S&P/ASX 200 index closed 0.3 per cent higher at 7,162.5 but fell off from the session high.

Australia's unemployment rate jumped by more-than-expected in January from nine-month lows in December, bolstering expectations of further monetary stimulus, and comes after tepid wage growth reported on Wednesday.

"Leading labour market indicators continue to suggest a deterioration in unemployment over coming months," ANZ research said in a note to clients, while Andrew Hanlan, an economist at Westpac said "wages growth is set to remain weak and inconsistent with an economy on a sustainable expansion path."

A further lift in the unemployment rate "will be enough to push the RBA over the line for another rate cut, most likely in Q2," ANZ added.

Also aiding sentiment, China cut the benchmark lending rate, as widely expected, to help companies whose businesses have been badly disrupted by the coronavirus outbreak.

New Zealand's benchmark S&P/NZX 50 index rose for a fourth straight session, up 0.7 per cent to 12,064.86 and marking a fresh record high.

REUTERS