Australia Equities Track Wall Street Gains

Australian stocks jumped 145 points, or 1.7%, to 8,641 by midday Thursday, rebounding from the prior session’s weakness. The rally tracked an overnight Wall Street rally after U.S. President Trump said Washington was in the “final stages” of negotiations with Iran, according to a pool report, boosting investor optimism. Locally, inflation expectations eased in May after hitting an over three-year high in April. Meanwhile, flash data on Australia’s factory activity showed a continued growth in May despite the reading softening from April. However, strength was capped by domestic labor market data indicating the highest jobless rate in over four years in April, with employment falling for the first time since November. Gains were almost broad-based, led by electronic tech, financials, producer manufacturing, and logistics. Among standouts were Mineral Resources (4.3%), Qantas Airways (3.8%), BHP Group (3.2%), and Evolution Mining (3.0%). The four major banks climbed between 1.1% to 2.4%.
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