BHP Gains 1.3% as Jobs Data Fuels RBA Rate Hike Bets

The Australian share market rose 0.7% on Thursday, paring earlier gains after a jobs report that blew past expectations and pushed up the odds of another Reserve Bank rate hike.

Australia added 76,000 jobs in June, well above the 15,000 forecast. The unemployment rate held at 4.4%. Markets responded by pricing in a roughly 32% chance of an August rate increase, with a full hike now baked in by year-end. The Australian dollar climbed above US 70 cents.

Materials led the day's gains. James Hardie jumped 6.8% after upgrading its quarterly sales guidance. Mining stocks tracked firmer commodity prices higher. BHP added 1.3%, Fortescue rose 1.6% and Evolution Mining climbed 3.1% as gold traded near US$4,116 an ounce. Iron ore futures gained 1.7%.

Energy stocks advanced alongside oil. Brent crude rose to almost US$96 a barrel after attacks on Saudi Arabian tankers in the Red Sea. Woodside Energy added 0.8%. Karoon Energy climbed 3.7% after reporting June quarter sales revenue of US$116.4 million from production of 1.08 million barrels of oil equivalent.

The major banks outperformed. National Australia Bank rose 1.6%, Commonwealth Bank and Westpac each gained 1.5%, while ANZ added 1.1%.

Technology was the weakest sector. Disappointing earnings from Google parent Alphabet weighed on global tech sentiment overnight. WiseTech Global fell 4.6%, Xero dropped 4% and TechnologyOne lost 2.3%.

Sandfire Resources rallied 4.3% after reporting record quarterly revenue, stronger copper-equivalent production and a net cash position of $353 million. Generation Development Group surged 32% after delivering record quarterly sales and reporting funds under management grew 36% over the financial year to $46.4 billion.

BHP Group Ltd carries an Alpha Score of 69 out of 100, a Moderate rating in the Basic Materials sector.