Australia: Shares end at 11-month high as jobs data fans optimism

[SYDNEY] Australian shares finished at their highest in 11 months on Thursday as strong employment data instilled confidence that the country's economy was firmly on the path to recovery, while broader risk-on cues boosted investor appetite.

The S&P/ASX 200 index rose 0.8 per cent to 6,823.7 at the close of trade, its highest since February last year, settling just over 300 points short of record pre-pandemic highs.

The country's unemployment rate fell to 6.6 per cent in December on consumer spending and housing strength, which have so far helped recover most of the job losses suffered during the Covid-19 lockdown in 2020.

"The employment data certainly shows positives in terms of our economy," said James Tao, analyst at CommSec.

"There are expectations of a pretty big bounce back in economic growth as well in 2021, and all of that leads to plenty of optimism in the market."

Brokerage Morgan Stanley hiked its price target for the benchmark to 7,100 from 6,700, citing earnings strength for miners and taking an overweight position on banks.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Tech stocks rose 2.7 per cent to be the biggest percentage gainers on the benchmark and end at a record high, tracking a strong showing in Wall Street peers overnight after a smooth swearing in for Joe Biden as US president.

New Zealand's benchmark S&P/NZX 50 index rose 0.7 per cent to finish the session at 13,112.19.

REUTERS