Australian shares hit 5-week high as rate-hike bets ease

Australian shares surged to a 5-week high on Friday, propelled by miners as less-than-optimistic labor market data reduced expectations of an imminent interest rate increase and spurred widespread buying. The S&P/ASX 200 index climbed 1%, reaching 8,809.80 points by 0025 GMT, after briefly surging 1.2% earlier in the session to its highest level since September 10.

The benchmark was poised for its strongest week since mid-August, up 1% so far this week. Data released on Thursday revealed employment dropped by the most in over a year, prompting markets to reassess their expectations for a rate hike. Traders lowered the probability of a November hike to approximately 9% from 32% prior to the data, and the likelihood of a December hike dropped to 28% from 56%.

On the stock exchange, miners drove the gains, surging nearly 3%. BHP Group and Rio Tinto both increased more than 2%. Over the week, miners suffered a 3% decline, marking their worst week since mid-September. Gold stocks climbed 3%, buoyed by higher precious metal prices. The sub-index has lost over 2% this week, on track for a fourth consecutive weekly decline.

Tech stocks rode the rally, jumping over 4% after Wall Street gained overnight. The sub-index has fallen nearly 3% this week, on course for its worst week in over a month. WiseTech Global and Xero both gained 5.1% and 3.7%, respectively. Energy stocks rose 0.3%, despite sector leaders Woodside Energy and Santos slipping slightly.

Healthcare stocks expanded 1%, reaching their highest level since early February. Financials rebounded from early losses to trade flat, with three of the "Big Four" banks trading in the red. For the week, lenders gained over 3%, setting for their best performance since April. New Zealand's benchmark S&P/NZX 50 index concluded the day unchanged.