ASX soars as expectations of rate cut on spike in unemployment
The benchmark ASX 200 jumped 77.20 points or 0.90 per cent to 8,639.
The broader All Ordinaries also had a strong day up 74.40 points or 0.84 per cent to close Thursday's trading at 8,890.80.
The Aussie dollar slumped 0.87 per cent and is now buying 64.64 US cents at the time of writing.
Australia's markets immediately responded to the ABS announcement of a jump in the unemployment rate, with bond traders pricing in a 98 per cent chance of a rate cut.
The unemployment rate rose to 4.3 per cent last month against expectations of holding flat at 4.1 per cent.
With expectations of lower rates, the Australian dollar slumped back below 65 US cents, while Australia's sharemarket jumped on the news.
AMP economist My Bui told NewsWire the fall in the Australian dollar followed the market pricing in a more definite rate cut by the RBA.
It was a sea of green on the markets, with all 11 sectors finishing higher, led by industrials, financials and technology stocks.
'We continue to see the jobs market as being weaker than the (figures suggests),' Ms Bui said.
'Yes the unemployment rate seems quite low but this month we've seen weakening in multiple measures, including leading indicators in the job market which I think the RBA will pay attention to.'
Betashares chief economist David Bassanese said the weaker than expected job figures were a 'slum dunk' for rate cuts in June.
'We'll need more consistent signs of weakness in both employment and hiring indicators before we can conclude the labour market is turning,' he said.
'That said, today's result clearly adds to the case for a RBA rate cut at the August policy meeting provided next week's Q2 CPI report is not a shocker.'
Market heavyweight CBA jumped 1.82 per cent to $180.80, while NAB gained 1.12 per cent to $38.70, Westpac finished 1.20 per cent higher at $33.70 and ANZ climbed 1.10 per cent to $30.45.
Tech stocks also rose with Xero jumping 1.71 per cent to $179.13, Life360 finished 1.10 per cent higher to $35.80 and Codan jumped 3.13 per cent to $19.75.
Iron ore miners had a mixed day despite the price of the commodity rising to a two-month high, surpassing $US100 a tonne during the day's trading.
BHP closed flat at $39.11, Fortescue gained 0.30 per cent to $16.91 and Rio Tinto gained 0.52 per cent to $7.48.
In company news shares in Clarity Pharmaceuticals rose 2.05 per cent to $3.48 after announcing an important milestone in the Co-PSMA trials.
Shares in superannuation and fund management business Australian Ethical soared 7.40 per cent to $6.68 after releasing its fourth quarter and full yearly update.
The ethically based fund said there was a 34 per cent increase in funds under management to $13.94bn.
The fight for ASX listed wagering business Pointsbet continued with Mixi formally lodging a second takeover bid and Betr announcing an unsolicited all-scrip takeover on Wednesday after the market closed.
Shares in Pointsbet closed flat.
Qantas shares also finished in the green up 0.55 per cent to $11.04 after it secured a Supreme Court injunction to stop stolen data being published by anyone, a few weeks after cybercriminals gained access to the airlines systems and stole 5.7 million customers personal details.
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