Australia Stocks Bounce Back After Disappointing Job Numbers
Australia's stock market pared its losses on Thursday after data showed that unemployment rose more than expected, but investors continued to price in the risk of a rate hike from the Reserve Bank of Australia (RBA) at its upcoming policy meeting.
The S&P/ASX 200 index fell as much as 1.4% earlier in the session, hitting its lowest since June 12, but trimmed its decline to 0.8% by midday.
Net employment rose 39,500 in August from July, exceeding market forecasts for a 20,000 increase, but the jobless rate rose to a five-year high of 4.6%, above forecasts for a steady 4.5% climb.
RBA Governor Michele Bullock had said on Tuesday that unemployment in a range of 4.5% to 5.0% could help restrain inflation, and market pricing was little changed following the data, with investors continuing to price in a 25-basis-point rate increase at the RBA's September 28-29 meeting.
The resources sector was among the major laggards, falling 1.8%, while energy stocks were one of the few sectors trading in positive territory, advancing 1% after a sharp rally in oil prices overnight.