Australia’s unemployment rate has climbed to 4.7 per cent, its highest level in almost five years, prompting investors to reassess the prospect of another interest rate rise from the Reserve Bank.
About 39,000 jobs were lost in September, with the decline driven by a sharp fall in part-time employment. The weaker-than-expected jobs update helped the market recover after it opened sharply lower.
Markets are now effectively ruling out a rate hike on Melbourne Cup Day, easing pressure on borrowers and supporting a broad recovery in financial stocks.
The major banks led the rebound, with Commonwealth Bank, ANZ, Westpac and NAB all recording strong gains. Retail stocks also advanced, while Coles and Woolworths were among the standout performers.
Mining companies moved in the opposite direction. BHP and Rio Tinto both fell heavily as the sector struggled during the session.
The Australian dollar also weakened, slipping to about 69.5 US cents.
