Australian Shares Rebound as Unemployment Rate Hits Five-Year High
Australian shares pared some of their early losses on Thursday after data showed the unemployment rate rose more than expected, though investors continued to price in a potential interest rate hike from the Reserve Bank of Australia next week.
The S&P/ASX 200 index fell as much as 1.4% earlier in the session, hitting its lowest since June 12, but later recovered to a decline of only 0.8%. 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 that unemployment in a range of 4.5% to 5.0% could help restrain inflation, which is a key concern for the central bank. 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.
Resources stocks were among the major laggards, with BHP and Rio Tinto falling 2.1% and 0.7%, respectively. Financials slipped 0.9%, while real estate and consumer staples stocks lost 1.5% and 0.3%, respectively. Energy was one of the few sectors trading in positive territory, advancing 1% after a sharp rally in oil prices overnight.