Australian shares rose on Thursday, led by financials after Westpac reported a higher quarterly profit, while a rebound in domestic employment for July eased fears over cracks in the labour market.
The S&P/ASX 200 index settled 0.5% higher at 8,873.8. It jumped as much as 0.8% earlier in the session, logging its fourth record high this week.
Heavyweight financials, climbed 1.2%, bolstered by a more than 6% jump in Westpac.
The company reported a rise in quarterly profit and a wider net interest margin was seen by analysts as a sign of resilience amid rate pressures, sending the stock to its highest level in a decade.
Peers National Australia Bank and ANZ Group , which are yet to report quarterly results, rose 1.9% and 2%, respectively. Shares of top lender Commonwealth Bank of Australia were the only ones to fall among the ‘big four’ as concerns around its valuations lingered.
CBA’s stock fell on Wednesday despite reporting an in-line annual profit and record dividend, as investors balked at its lofty share price — among the priciest for banks globally.
Expectations for Westpac were lower than CBA, making the former’s results more impactful, said Tim Waterer, chief market analyst, KCM Trade.
Meanwhile, Australia’s job market showed strength in July, with employment bouncing back as firms added more full-time roles, while the jobless rate fell from a 3-1/2 year high, easing worries of a slowdown.
Among other sectors, miners slipped 0.8% as iron ore futures were weighed down by signs of weak demand.
BHP Group, the world’s largest listed miner, fell 0.5%, while Rio Tinto and Fortescue slipped 3.7% and 1.7%, respectively.
Discretionary and real estate stocks, rose 1% each.
In individual stocks, Telstra, Australia’s largest telco, slipped 2.6% to close at its lowest since July 11, after it forecast higher annual operating earnings, but fell short of market expectations.
New Zealand’s S&P/NZX 50 index ended 0.5% higher at 12,834.08.
Comments
Comments are closed for this article.