Australian Shares Pare Losses After Jobless Rate Tops Forecasts

Australian shares pared their losses on Thursday after data showed the unemployment rate rose more than expected. 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 the end of the day.

Data from the Australian Bureau of Statistics showed net employment rose 39,500 in August from July, above market forecasts for a 20,000 increase. However, the jobless rate rose to a five-year high of 4.6%, above forecasts for a steady 4.5% climb.

Reserve Bank of Australia Governor Michele Bullock said on Tuesday that unemployment in a range of 4.5% to 5.0% could help restrain inflation. Market pricing was little changed following the data, with investors continuing to price in a 25-basis-point rate increase at the central bank's September 28-29 meeting.