The Australian share market has closed higher, boosted by a better-than-expected unemployment rate and expectations that another cut to interest rates will be forthcoming despite the stronger jobs figures.
Australia’s monthly jobless rate unexpectedly dropped to 4.9 per cent in April, when economists had expected it to rise to 5.3 per cent, up from 5.2 per cent in March.
On Thursday, the benchmark S&P/ASX200 index rose 20.5 points, or 0.48 per cent, to 4,295.6 points, while the broader All Ordinaries index lifted 21.6 points, or 0.5 per cent, to 4,353.8 points.
On the ASX 24, the June share price index futures contract was 21 points higher at 4,301 points, with 35,634 contracts traded.
CMC Markets sales trader Ben Taylor said the unemployment number was encouraging to investors who were also pondering the negative factors of slowing import growth in China and the continued uncertainty over whether Greece would proceed with economic austerity measures.
“The unemployment read was better than expected, and that’s sent the market higher,” Mr Taylor said.
“Even after the unemployment data came out a little bit better than expected, I think people still do expect a rate cut.
“I think people are buying this market on the idea that the Aussie dollar will continue to fall, and our prospects will get better once the (official interest) rates are down around three per cent.”
Among the major banks, National Australia Bank was four cents lower at $24.57 despite its six-month profit rising to a record $2.83 billion.
ANZ was down 97 cents to $22.15 after the stock went ex-dividend, Commonwealth Bank gained 24 cents to $51.90, and Westpac added six cents to $22.90.
In the resources sector, global miner BHP Billiton was 29 cents higher at $34.62.
Rio Tinto was 71 cents richer at $61.94 as Rio’s chairman told shareholders that he was more confident about the global economic picture than he was six months ago.
Among other stocks, News Corporation rose 89 cents to $20.16, and its non-voting stock advanced 93 cents to $19.96 after third-quarter net profit rose 47 per cent.
Singapore Telecommunications was steady at $2.53 as SingTel-owned telco Optus said net profit for fiscal 2012 rose 1.5 per cent to $787 million despite intense competition from rivals.
Fuel supplier and distributor Caltex Australia scraped off one cent to $13.39 as it said an ongoing review of the future of its loss-making refineries is focusing on the Kurnell refinery in Sydney.
Construction giant Leighton Holdings was 17 cents higher at $19.35 after it was awarded $800 million in gas and water infrastructure contracts in Queensland.
On Wall Street on Wednesday, the Dow Jones Industrial Average fell 97.03 points, or 0.75 per cent, to 12,835.06 points.
The price of gold in Sydney closed at $US1,594.04 per fine ounce, up $US1.89 from $US1,592.15 on Wednesday.
