Australian shares hit 5-week high as rate-hike bets ease

By Reuters News

- Australian shares hit a 5-week high on Friday, led by miners as softer-than-expected labour market data curbed expectations of a near-term interest rate hike and fuelled broad-based buying.

The S&P/ASX 200 index .AXJO was up 1% at 8,809.80 points, as of 0025 GMT, after rising as much as 1.2% earlier in session, its highest since September 10. The benchmark was on course for its best week since mid-August, having gained 1% so far.

Data released on Thursday showed employment fell by the most in more than a year, prompting markets to revisit their bets on a rate hike.

Markets reduced the odds of a November hike to about 9% from 32% before the data. The chance of a December move fell to 28% from 56%. AUD/

On the bourse, miners .AXMM led gains, surging nearly 3%. BHP Group BHP.AX and Rio Tinto RIO.AX both rose more than 2%.

For the week, miners have declined 3%, set for their worst week since mid-September.

Gold stocks .AXGD surged 3%, helped by higher bullion prices. The sub-index has fallen more than 2% so far this week, on track for its fourth straight week of declines. GOL/

Tech stocks .AXIJ joined the rally, rising over 4% after Wall Street gained overnight. The sub-index has fallen nearly 3% this week, set for its worst week in more than a month.

Tech majors WiseTech Global WTC.AX and Xero XRO.AX gained 5.1% and 3.7%, respectively, on the day.

Energy stocks .AXEJ gained 0.3% even though sector heavyweights Woodside Energy WDS.AX and Santos STO.AX inched lower. Healthcare stocks .AXHJ climbed 1%, hitting their highest level since early February.

Financials .AXFJ recouped early losses to trade flat, with three of the "Big Four" banks trading in negative territory. For the week, lenders have gained over 3%, set for their best week since April.

New Zealand's benchmark S&P/NZX 50 index .NZ50 was flat for the day.

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