The Australian share market has notched up solid gains before the Easter long weekend as a continuing momentum in commodity prices helped rally frontline mining and energy stocks.
The benchmark S&P/ASX200 index ended 44.4 points, or 0.59 per cent, higher to 7523.4 on Thursday.
It recorded a similar 0.6 per cent increase over the shortened trading week and is now fewer than 100 points from its record high achieved last August.
The All Ordinaries index rose 50.2 points, or 0.65 per cent, to 7822.2.
Markets across the Asia Pacific region tracked higher on hopes that inflation may be close to peaking, and amid aggressive rate increases by major central banks in recent days.
Economists expect the Reserve Bank to join the action with its first cash rate increase in June.
That forecast was underlined by data on Thursday that showed unemployment stuck at 4.0 per cent, against market expectations of 3.9 per cent.
Investors are focused on the first-quarter consumer price data due on April 27, which will show whether Australia’s core inflation has climbed above the RBA’s 2-3 per cent target band.
“(Our) view is that the RBA will raise rates by June. A high headline and core inflation print in Q1 will add pressure to their policy stance, and a sufficiently high read could be enough to force their hand in May,” NAB economist Taylor Nugent said in a note.
Firmer global crude prices due to worries about tight global supply also aided local stocks, with energy again among the top-performing sectors on the ASX.
Woodside Petroleum and Santos both climbed more than 1.0 per cent each, while Viva Energy and Beach Energy rose around a similar level.
The top iron ore miners helped underpin the gains in the materials sector, with BHP and Fortescue Metals each rising more than 1.3 per cent.
They received a boost from China’s announcement that authorities would cut banks’ reserve requirements soon to support the COVID lockdowns-battered economy.
Gold producers such as Regis Resources, Evolution and Northern Star joined the action, jumping between two and four per cent after bullion prices hit a one-month peak as high inflation boosted the appeal of safe-haven assets.
Travel stocks also flourished on hopes of an improved outlook after US airline Delta Air said strong demand was providing enough pricing power to make up for soaring fuel costs, sparking a rally in airline stocks globally.
Qantas shares jumped 7.1 per cent to $5.45 while Corporate Travel management, Flight Centre and Webjet were up 5-7 per cent.
However, the heavyweight financials sector bucked the trend.
Each of the big four banks ended in negative territory, with sentiment soured by Bank of Queensland’s results.
The Brisbane-based regional lender underlined the pressure on earings in the sector, reporting a decrease in its net interest margin by 12 basis points to 1.74 per cent, amid ongoing competitive pressures and higher fixed-rate lending volumes.
The stock ended 6.3 per cent lower at $7.99.
Uniti Group shares rose 2.9 per cent to $4.96 after the telecoms firm agreed to a $3.62 billion takeover offer from a consortium of Canada’s Brookfield Asset Management and fund manager Morrison & Co.
Meanwhile, gains in the Australian dollar were capped after the unemployment data. It was buying 74.55 US cents at 1700 AEST, up from its 74.34 US cents at Wednesday’s close.
ON THE ASX
* The benchmark S&P/ASX200 index ended 44.4 points, or 0.59 per cent, higher to 7523.4 on Thursday.
* The All Ordinaries index rose 50.2 points, or 0.65 per cent, to 7822.2.
* At 1700 AEST, the SPI200 futures index was unchanged at 7496 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 74.34 US cents, from 74.34 cents on Wednesday
* 93.43 Japanese yen, from 93.77 yen
* 68.31 Euro cents, from 68.68 cents
* 57.75 British pence, from 57.25 pence
* 109.28 NZ cents, from 109.36 cents.
