Australian shares rose more than 1% on Thursday in broad-based gains after the US Federal Reserve signalled lower borrowing costs are coming in 2024, while traders assessed strong local employment data for November.
The S&P/ASX 200 index climbed 1.5% to 7,366.50 by 0037 GMT and was set for a five-session winning rally. Earlier in the day, the benchmark rose 1.6% to hit its highest level since Aug. 2.
The Fed kept interest rates steady for the third meeting in a row on Thursday, as was widely expected.
It acknowledged that inflation has eased and signalled that the rate tightening cycle might be over and lower borrowing costs could be in the cards in 2024.
In November, employment in Australia significantly exceeded forecasts for the second consecutive month as businesses hired more full-time employees.
However, the unemployment rate increased as more people looked for work. In Sydney, mining stocks led the gains, jumping as much as 2.7% to hit their highest level since Aug. 1.
Sector heavyweights BHP Group was up 1.4%, while Rio Tinto rose 1.6%. Rate-sensitive financials rose 0.7% in what could be their fifth consecutive session of gains.
Financials push Australian shares higher; Fed in focus
The ‘big four’ lenders climbed between 0.5% and 1.0%. Gold stocks surged as much as 6.8% and were set for their best session since March 20 after bullion prices jumped overnight.
Sector majors Northern Star Resources and Evolution Mining jumped 7.0% and 4.2%, respectively.
Energy stocks rose 0.8%, as oil prices ticked higher on a bigger-than-expected weekly withdrawal from US crude storage.
Top energy firms Woodside Energy and Santos climbed 0.5% and 1.4%, respectively.
Technology stocks were up 2.9%, tracking gains in their Wall Street peers.
Shares of Xero rose 3.1%.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.7% to 11,588.29.
The country’s economy unexpectedly contracted in the third quarter as a number of industries including manufacturing and construction saw activity slow and household spending eased, official data showed.
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