Australia's ASX 200 index extends gains to 0.7% after jobs data

Australia's ASX 200 index extends gains to 0.7% after jobs data

The Australian Securities Exchange (ASX) 200 index has extended its gains to 0.7% following the release of fresh jobs data. Despite expectations of rising unemployment, forward indicators point to more jobs growth, as reported by the Australian Bureau of Statistics (ABS) on Thursday [1].

Economists predict the unemployment rate to remain relatively low at 4.1% in June, while approximately 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, expects the jobless rate to rise to 4.4% by year-end but maintains that the labor market remains in good health [1].

The jobs data comes amidst a mixed global economic backdrop. US inflation, although slightly cooler than expected, has raised concerns about core goods inflation and tariff impacts. Meanwhile, Australian share futures dropped 13 points, or 0.15%, to 6,847, reflecting broader market sentiment [2].

The ASX 200 index finished down 9.1 points, or 0.11%, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07%, to 8,820.3. Despite these declines, the resilience of the Australian jobs market has provided a boost to investor confidence [1].

In other economic news, household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers. The Reserve Bank of Australia (RBA) continues to monitor the labor market closely, with further interest rate cuts expected to support consumption [1].

The building activity data for the March quarter, released by the ABS on Wednesday, showed a decline in new dwelling numbers, falling 4.4% to just under 42,000. This is well below the national housing accord target of 60,000 a quarter, indicating a slowdown in construction activity [1].

The ASX 200 index's performance highlights the ongoing resilience of the Australian economy, particularly in the jobs market. As the global economic landscape remains uncertain, investors will continue to closely monitor both domestic and international developments.

References:
[1] https://aapnews.aap.com.au/news/all-signs-point-to-jobs-market-holding-firm-in-new-data
[2] https://www.marketindex.com.au/news/morning-wrap-asx-200-to-fall-s-and-p-500-struggles-on-inflation-woes-nvidia