64,000 new jobs leads ASX to a record high on Thursday

The ASX has closed at another record high this week, driven by stronger than expected Australian economic news.

The ASX had another strong day on Thursday, breaking into new record high for the second time this week, as stronger than expected national jobs data drove financials and consumer discretionary shares higher.

The benchmark ASX 200 index gained by 71.20 points, or 0.86 per cent, to finish the session at 8,355.90 points.

The broader All Ordinaries grew by 67.50 points, or 0.79 per cent, to close at 8,624.10 points.

The Australian dollar rose by 0.2 per cent at 67 US cents.

Australian bond yields spiked and the Australian stock market had its best day in five weeks during intraday trading as 64,000 Australians found work in September.

“If you were hoping for a rate cut sometime soon you would be disappointed, but from an economic point of view it showed the labour market remains in good health,” Betashares chief economist David Bassanese said.

“We are able to find jobs for the still rapidly growing labour force.”

Australia’s market high comes off the back of a strong performance by the financials sector. Picture: NewsWire / Jeremy Piper

All but two of the 11 sectors were in the green, led by industrials (+1.84 per cent) and financials (+1.65 per cent)/ Only information technology (-1.08 per cent) and materials (-0.4 per cent) were down.

AMP was the strongest performing share on the ASX 200 after the company reported a 76 per cent year-on-year increase in platform net cashflows of $750m.

“AMP continued its Lazarus-like revival as its share price surged 17.71 per cent to $$1.595 its highest price since the early days of 2021,” IG Market analyst Tony Sycamore said.

“Today’s rally followed an earnings update, which showed solid gains across the business.”

Australia’s big banks all had strong days on the market thanks to a better than expected economic backdrop and a good lead in from the major banks on Wall Street.

Leading the charge, the Bank of Queensland surged 4.79 per cent to $7 continuing its rally post earnings announcement on Wednesday.

The big four all had strong days respectively with Westpac climbed 2.55 per cent to $32.55, NAB rose 1.74 per cent to $39.12, ANZ grew 1.34 per cent higher to $31.82 and CBA added 1.57 per cent to $142.00, after its annual general meeting on Wednesday.

On the flip side China’s $10 trillion yuan stimulus package was not a boost for the Australian iron ore miners.

Rio Tinto traded down 1.78 per cent to $118.63 while Fortescue Metals fell 2.74 per cent to $19.91.

“The stimulus being announced are short-term measures to mop up the excess supply of housing still overhanging the market,” Mr Bassanese said.

The economist pointed to the challenge for Australia’s iron ore miners as there isn’t the same impetus for strong growth through Chinese construction.

“There are too many structural headwinds to expect a big rebound in property construction going forward. China’s great urbanisation move, with most of the transition for rural to urban already taken place,” Mr Bassanese said.

Originally published as 64,000 new jobs leads ASX to a record high on Thursday