US jobs figures boost investor confidence
The benchmark S&P/ASX 200 Index rose 26.7 points, or 0.5 per cent, to 5156.2, while the broader All Ordinaries added 28.4 points, or 0.6 per cent, to 5133.8.
The resource sector was the main driver, with materials jumping 2.7 per cent. BHP shares gained 2.8 per cent to $32.87, while Rio Tinto pushed up 3.1 per cent to $56.20 and Fortescue Metals finished 5.9 per cent higher at $3.61.
Credit Suisse strategist Damien Boey said strong performances in commodity markets at the end of last week, including a 6 per cent rise in copper prices, helped the miners jump out early.
"People are looking at resources stocks and they're thinking: 'well they're looking cheap on a variety of metrics, and commodities prices seem to have stabilised. On top of that, maybe some of these miners might be able to free up some cash flow by freeing up their capex,"' he said.
To start the day, the ASX 200 surged 1.4 per cent, breaking through the 5200-mark, but the release of March retail sales figures and the ANZ job advertisements survey pared back much of the gains.
Seasonally adjusted, retail sales fell 0.4 per cent in March; economists were expecting a 0.1 per cent rise. ANZ job ads dropped for the second consecutive month, falling 1.3 per cent in April.
The dollar eased more than a quarter of a cent after the data releases, sliding from above US103¢ to US102.75¢ in late trading.
The RBA is due to deliver its decision on the official cash rate on Tuesday. Credit Suisse interest rate futures are pricing in a 52 per cent chance of a 25-basis-point cut.
Among the banks, results were mixed. CBA added 0.9 per cent to $71.67 while Westpac lost 1.1 per cent to $33.17, NAB slid 0.7 per cent to $33.50 and ANZ finished 0.3 per cent lower at $31.51.
Shares in Boral lost 3.2 per cent after the company issued a profit warning.
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The ASX 200 finished higher after a miners-led rally boosted investor confidence. The benchmark S&P/ASX 200 rose 26.7 points (0.5%) to 5156.2, while the All Ordinaries added 28.4 points (0.6%) to 5133.8. Early gains were trimmed later in the session after domestic data releases.
Stronger commodity markets helped push miners higher — Credit Suisse noted a 6% rise in copper prices late last week, which supported resource stocks. Materials jumped 2.7% overall, with BHP up 2.8% to $32.87 and Rio Tinto up 3.1% to $56.20 as investors eyed cheaper valuations and stabilising commodities.
Fortescue Metals led the gains among major miners, finishing 5.9% higher at $3.61. The broader materials sector jumped 2.7%, reflecting the strength across commodity-linked stocks after positive moves in commodity prices.
Domestic data pared back earlier gains: seasonally adjusted retail sales fell 0.4% in March (economists had expected a 0.1% rise), and ANZ job advertisements dropped 1.3% in April for the second consecutive monthly fall. Those weaker readings reduced some of the market’s upside.
The Australian dollar eased after the data, slipping more than a quarter of a cent from above US103¢ to about US102.75¢ in late trading following the weaker domestic figures.
The RBA was due to deliver its decision on the official cash rate on Tuesday. Credit Suisse interest-rate futures were pricing in roughly a 52% chance of a 25-basis-point cut at that meeting, reflecting uncertainty about near-term monetary policy.
Bank results were mixed: Commonwealth Bank (CBA) rose 0.9% to $71.67, while Westpac fell 1.1% to $33.17. NAB slid 0.7% to $33.50 and ANZ finished 0.3% lower at $31.51.
Boral shares dropped 3.2% after the company issued a profit warning, which prompted investors to sell the stock during the session.
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