Australia shares extend gain as surprise decline in April jobs curbs rate-hike bets

The Australian share benchmark extended its advance slightly on Thursday, after local monthly jobs data surprised investors with signs of loosening and curbed expectations of a near-term rate hike, while hopes rose for a U.S.-Iran peace deal.

The S&P/ASX 200 index rose 1.6% to 8,629.80 as of 0213 GMT, after rising 1.5% earlier. The benchmark shed 1.3% on Wednesday to close below the key psychological level of 8,500 for the first time since end-March.

U.S. President Donald Trump said that negotiations with Iran were in the final stages, while warning of further attacks unless Iran agrees to a deal. Trump added that he was willing to wait a few days for the “right answer” from Iran.

That sent crude prices down 6% overnight, tempering energy-fueled inflationary concerns and the risk of an immediate monetary policy tightening.

Back in Australia, net employment declined by 18,600 in April, far below the market forecast of a 15,000 gain, according to the Australian Bureau of Statistics data.

It led to the market scaling back bets for a rate hike in the Reserve Bank of Australia’s June meeting to 10% from 20% earlier.

Financials rose 1.5%, with all “Big Four” banks gaining between 0.8% and 2.6%.

Mining stocks advanced 2.7%, on track to snap five straight sessions of losses, in tandem with higher iron ore and

copper prices. Bellwethers BHP, Rio Tinto and Fortescue gained between about 1.3% and 3%.

Among gold miners, Evolution Mining and Regis Resources rose 3.7% and 2.5%, respectively.

Technology stocks tracked Wall Street’s surge ahead of leading AI chipmaker Nvidia’s quarterly results, which were announced after the bell. Index constituent WiseTech Global rose 0.1%.

Energy stocks snapped a four-day winning run. Woodside Energy and Santos declined 2.1% and 1.2%, respectively.

In New Zealand, the benchmark S&P/NZX 50 index advanced 0.5% to 12,825.