Australian shares notched a record closing high for the fifth straight session on Friday (Sep 20) and logged their biggest weekly rise in a month, as global optimism in the aftermath of an oversized US interest rate cut overshadowed concerns over domestic jobs report.
The S&P/ASX 200 index closed 0.2 per cent higher at 8,209.50 points, led by gains in financials and gold stocks. For the week, the index jumped 1.1 per cent, recording its biggest rise since Aug 19.
The US Federal Reserve announced a bigger-than-usual half-percentage-point cut on Wednesday, sending the US major indexes S&P 500 and the Dow Jones Industrial Average to a record-high close overnight.
The Reserve Bank of Australia is, however, expected to keep its key policy interest rate unchanged next week and for the rest of the year as inflation was still above its target range, according to a Reuters poll.
The jobs data on Thursday showed that the labour market remained tight, backing the RBA’s view that rate cuts are unlikely in the near term.
The Fed trumps the local jobs report with US markets hitting record highs, said Henry Jennings, senior analyst and portfolio manager at Marcus Today.
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“It’s been a very big, big run in the market, so I would expect to see some consolidation, especially in the banking sector.”
The financials inched 0.4 per cent higher, with the “Big Four” banks gaining between 0.3 per cent and 1.2 per cent.
Local gold stocks rose 0.7 per cent as bullion prices lingered near record high levels, while energy stocks inched 0.2 per cent higher on strong oil prices.
Meanwhile, in New Zealand, data on Thursday showed that economy contracted in the second quarter, leaving more room for rate cuts by the central bank. The Reserve Bank of New Zealand lowered rates in August for the first time in more than four years.
New Zealand’s benchmark S&P/NZX 50 index closed 1.5 per cent lower at 12,478.50 points. REUTERS
