The Australian share market closed stronger after three consecutive days of losses on views that there is a reduced likelihood of a Greek debt default and solid US private sector job numbers.
Investors also ignored Australia’s own official jobs figures released on Thursday, which showed the unemployment rate rose 0.1 percentage point in February, to 5.2 per cent.
The benchmark S&P/ASX200 index closed up 27.3 points, or 0.66 per cent, at 4,171, while the broader All Ordinaries index was up 27.7 points, or 0.65 per cent, at 4,262.1.
It was a strong finish for the bourse after being only 0.4 per cent stronger 30 minutes before the close.
On the ASX 24, the March share price index futures contract was up 33 points at 4,174, with 32,528 contracts traded.
Market strategist Stan Shamu, of IG Markets, said the strong finish suggested investors believed private creditors of Greek debt would agree to a debt swap and avoid a default in a vote due overnight.
Mr Shamu said the rising unemployment rate was not a surprise to analysts and most economists still felt the economy was weak for all intents and purposes apart from the mining sector.
“Everything else is still generally struggling in Australia and this is making analysts call for some rate cuts in the short term to help ease the pressure on the economy,” he told AAP.
Local investors were encouraged by Wall Street’s strong performance overnight, while rumours circulated about a potential cash rate cut in China helping boost risk assets, such as resources stocks.
The best performers were energy stocks, which shot up by more than 1.7 per cent while mining stocks were 0.8 per cent better.
Oil and gas major Santos was the top performer among the ASX’s 50 companies, with a 54 cent, or 3.97 per cent, jump to $14.14.
Fortescue Metals Group was the next best, jumping 20 cents, or 3.77 per cent, to $5.51, while market heavyweight BHP Billiton gained 25 cents to $34.30, and rival Rio Tinto added 24 cents to $62.66.
An $US11 jump in the price of gold in New York overnight supported Newcrest Mining shares on Thursday, which gained four cents to $30.64.
Major banks and financials were mostly stronger, with National Australia Bank leading the big four banks higher, gaining 31 cents, or 1.34 per cent, to $23.38.
National turnover had reached 2.1 billion shares by 1630 AEDT, worth $5.4 billion, with 579 stocks trading up, 430 down and 380 steady.
