The Australian share market or S&P/ASX 200 (INDEXASX: XJO) opened Friday’s ASX trading session slightly higher.
On Thursday, the ASX 200 advanced to a fresh eight-month high after weaker-than-expected jobs data showed the Australian economy slowing, raising expectations for less aggressive rate hikes from the Reserve Bank.
The benchmark S&P/ASX200 index closed on Thursday up 41.9 points, or 0.6 per cent, to 7,435.3, its best level since April 22. The broader All Ordinaries (ASX: XAO) gained 38.9 points, or 0.5 per cent, to 7,648.4.
The Australian Bureau of Statistics reported that employment fell by 14,600 in December, the opposite direction to expectations of an 25,000 increase. Unemployment came in at a still very low 3.5 per cent, but not quite as good as the 3.4 per cent that economists’ consensus was expecting.
ASX mining shares lead market
Mining led the market higher, posting a 1 per cent rise in the sub-sector index. Rio Tinto Ltd (ASX: RIO) gained $3.97, or 3.3 per cent, to $125.96, a ten-month high. Fortescue Metals Group Ltd (ASX: FMG) was up 38 cents, or 1.7 per cent, to $22.58, while BHP Group Ltd (ASX: BHP) closed 60 cents, or 1.2 per cent, higher at $49.68 after announcing that it was on track to meet its production guidance for 2022/23.
Of the lithium producers, Allkem Ltd (ASX: AKE) advanced 36 cents, or 2.9 per cent, to $12.61, and Pilbara Minerals Ltd (ASX: PLS) added 1 cent to $4.02. IGO Ltd (ASX: IGO), which mines nickel as well as lithium, rose 13 cents, or 0.9 per cent, to $14.34, and Mineral Resources Ltd (ASX: MIN), which produces iron ore and lithium, was up 37 cents, or 0.4 per cent, to $88.06.
In the energy arena, Woodside Energy Group Ltd (ASX: WDS) eased 22 cents, or 0.6 per cent, to $36.78, Santos Ltd (ASX: STO) lost 12 cents, or 1.6 per cent, to $7.24. Whitehaven Coal Ltd (ASX: WHC) lost 6 cents, or 0.7 per cent, to $8.93 but Yancoal Australia Ltd (ASX: YAL) gained 16 cents, or 2.6 per cent, to $6.35.
The big banks were all higher, although more modestly. Commonwealth Bank of Australia (ASX: CBA) moved 1 per cent higher to $108.74, ANZ Banking Group (ASX: ANZ) added 0.4 per cent to $24.88, Westpac (ASX: WBC) was up 0.6 per cent to $23.95 and National Australia Bank Ltd (ASX: NAB) edged 0.1 per cent higher at $31.71. Investment bank Macquarie Group Ltd (ASX: MQG) rose 1.3 per cent to $181.98. Suncorp Group Ltd (ASX: SUN) rode a broker upgrade to a 44-cent gain, or 3.7 per cent, to an 18-month high of $12.36.
Telstra Corp Ltd (ASX: TLS) gained 6 cents, or 1.5 per cent, to $4.15, marking its highest close in a year. Biotech heavyweight CSL Limited (ASX: CSL) added $2.42, or 0.8 per cent, to $295.25. Investigative analytics and intelligence software company Nuix Ltd (ASX: NXL) surged 12 cents, or 14.6 per cent, after it said it expects half-year earnings to beat last year’s effort.
Wall Street gets rate blues
US indices retreated overnight as investors mulled the likelihood that the Federal Reserve will keep raising rates despite signs of slowing inflation. The blue-chip Dow Jones Industrial Average lost 252.4 points, or 0.8 per cent, to 33,044.6, its third straight losing day. The broader S&P 500 slid 30 points, also 0.8 per cent, to 3,898.8, while the tech-heavy Nasdaq Composite shed 104.7 points, or just under 1 per cent, to close at 10,852.3. European markets shared the weaker sentiment, with the STOXX 600 index giving up 1.5 per cent.
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On the commodity front, gold jumped US$25.17, or 1.3 per cent, to US$1.932.31 an ounce, while the global benchmark crude oil grade, Brent crude added US$1.27, or 1.5 per cent, to US$86.25 a barrel and West Texas Intermediate gained US$1.10, or 1.4 per cent, to US$80.58 a barrel. The Australian dollar (AUDUSD) is buying 69.12 US cents this morning.
