Australian shares rose on Monday, led by miners as iron ore prices firmed, while last week’s US jobs report showing a slowdown in wage growth eased investor worries about inflation outlook and the Federal Reserve’s monetary policy stance.
The S&P/ASX 200 index gained 0.9% to 7,174.10 by 2320 GMT.
The benchmark ended 0.7% higher on Friday. Data showed on Friday that the US economy added jobs at a solid clip in December, pushing the unemployment rate back to a pre-pandemic low of 3.5% as the labour market stayed tight, although average hourly earnings rose 4.6% in December from a year earlier, down from 4.8% in November.
Local miners jumped 1.2% as iron ore prices inched higher on optimism around China’s stepped-up policy support for its ailing domestic property sector.
Heavyweights BHP Group and Rio Tinto jumped 1.5% and 0.7%, respectively. Fortescue Metals Group said that Ian Wells will step down as chief financial officer.
Shares were up 0.8%.
Essential Metals jumped 40.6%, eyeing its best day since October 2021, after receiving a buyout bid from Tianqi Lithium Energy Australia Pty Ltd, a joint venture between IGO Ltd and Tianqi Lithium Corp.
IGO gained 1.8%. Gold stocks gained 1.5%, as US Treasury yields and the dollar fell. Newcrest Mining and Northern Star Resources jumped 2.2% and 1.7%, respectively.
Australia shares close higher on commodities strength
Energy stocks jumped 0.8% even as oil prices fell.
Sector majors Santos and Woodside Energy advanced 0.9% and 0.5%, respectively. Financials gained 0.8% with the “Big Four” banks jumping between 0.8% and 1.2%.
Meanwhile, New Zealand’s benchmark S&P/NZX 50 index jumped 0.2% to 11,646.79.
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