Australian Shares Trim Declines Amid Higher Unemployment Rate

Australian stocks trimmed their declines on Thursday after data showed the unemployment rate rose more than expected. The S&P/ASX 200 index was down 0.8% at 8,693.30 as of 0200 GMT, having fallen as much as 1.4% earlier in the session to its lowest since June 12.

The Australian Bureau of Statistics reported that net employment rose 39,500 in August from July, exceeding 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, which is priced into the market. 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.

The Reserve Bank of Australia Governor Michele Bullock said on Tuesday unemployment in a range of 4.5% to 5.0% could help restrain inflation. However, resources stocks like BHP and Rio Tinto fell 2.1% and 0.7%, respectively, as copper prices fell from near-record highs on a stronger U.S. dollar.