Australian shares hit record high as weak jobs data boosts rate-cut bets

Australian shares rose to a record high on Thursday, lifted by gains in banks and real estate stocks after data showed higher-than-anticipated unemployment in September, lifting bets of an interest rate cut in November.

The S&P/ASX 200 index climbed as much as 0.8% to 9,059.40 by 0043 GMT and was on track for a third straight session of gains.

The benchmark crossed the 9,000 level for the first time since October 6.

The country’s unemployment rate spiked unexpectedly to a near four-year high last month, official data showed, a weak reading that cemented the case for further rate cuts.

Markets now price in a nearly 75% chance of the Reserve Bank of Australia cutting the 3.65% cash rate in November, up from just 40% before the data.

Earlier in the day, Australia’s top central banker said a pickup in consumer spending and higher readings on some parts of inflation had given policymakers pause to consider whether further rate cuts were needed.

Banks led the charge with a 1.4% gain.

The “Big Four” banks rose between 1% and 1.9%. Banks typically benefit from lower interest rates, which can translate to higher lending volumes for them.

Shares of Macquarie Group jumped 4.4% to their highest since late August after a $40 billion AI data centre deal with an investor group comprising BlackRock, Microsoft and Nvidia.

Real estate stocks advanced 2.2%, with Mirvac Group up 3.5%, while gold stocks climbed 2.2% as bullion prices notched a fresh high.

Gold miners Evolution Mining and Northern Star Resources rose 3% and 2.3%, respectively.

Miners advanced 0.3%, with BHP up 0.2%. Energy stocks were largely unchanged.

However, Santos rose 1.3% even after the firm narrowed its full-year output forecast.

In New Zealand, the benchmark S&P/NZX 50 index inched 0.2% higher to 13,327.89.