Australia's S&P/ASX 200 index rises 0.9% to 8,720.3 points to hit fresh record high

Australia's S&P/ASX 200 index rises 0.9% to 8,720.3 points to hit fresh record high

The Australian stock market experienced a notable gain on Thursday, as the S&P/ASX 200 index surged to a new record high of 8,720.3 points, marking a 0.9% increase from the previous session [1]. This upward trend was largely driven by gains in index heavyweight banks, which rallied by 1.3%, and a weakening jobs data report that fueled expectations for an interest rate cut by the Reserve Bank of Australia (RBA) [1].

The S&P/ASX 200 index, which closed at 8,639 points earlier in the session, reached a new peak of 8,641.3 points before closing at 8,720.3 points. This performance was bolstered by the "Big Four" Australian banks, which saw gains ranging from 1% to 1.6% [1]. The broader market also benefited from gains in real estate and health stocks, which added 1.4% and 0.8% respectively, while mining stocks ended the day flat [1].

The Australian jobless rate climbed to its highest level since late 2021 in June, with the economy adding just 2,000 jobs—well below market expectations of a 20,000 rise [1]. This unexpected soft data strengthened market bets that the RBA could cut interest rates as early as next month. According to the RBA rate tracker, about 90% of the market expects the central bank to cut rates at its August 12 meeting [1].

Anthony Doyle, chief investment strategist at Pinnacle Investment Management, commented on the market's response to the weaker jobs data, stating, "Today's surprisingly weak jobs data has cemented market conviction that the RBA's next move is a cut, effectively giving a green light to risk assets" [1].

New Zealand's benchmark S&P/NZX 50 index also ended the session 1.2% higher at 12,905.41 points [1]. Meanwhile, the Australian dollar traded at $0.658 on Friday, reflecting the broader market sentiment [3].

Looking ahead, investors will continue to closely monitor the RBA's policy stance and any further economic data releases that could influence interest rate decisions. The Australian stock market is expected to remain volatile, with investors positioning themselves for potential rate cuts and the impact on various sectors.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TE08W:0-banks-drive-australian-shares-to-record-high-as-softer-jobs-data-fuels-rate-cut-bets/
[2] https://au.finance.yahoo.com/quote/%5EAXJO/
[3] https://www.nasdaq.com/articles/australian-market-slips-modest-losses-mid-market
[4] https://tradingeconomics.com/australia/stock-market