Australian shares opened higher on Friday, in tandem with Wall Street’s overnight strength, as US jobs data calmed investor fears over a possible recession, while local gold and energy stocks tracked a surge in commodity prices.
The S&P/ASX 200 index was up 0.6% at 7,727.8 points, as of 0034 GMT.
The benchmark closed 0.2% lower on Thursday.
Data showed the number of new applications last week for unemployment benefits fell more than expected in the United States, easing worries of an imminent slowdown in the world’s largest economy.
Back in Sydney, energy stocks added 1.1% as oil prices settled higher after US jobs data assuaged demand concerns while the Middle East war helped prices recover from multi-month lows.
However, Brent crude futures dipped 0.1% to $79.09 a barrel while US West Texas Intermediate (WTI) crude also lost 0.1% to $76.11 per barrel.
Shares of Woodside and Santos gained 1.1% and 0.9%, respectively.
Australian gold stocks climbed 2.6% as prices of safe-haven bullion jumped more than 1% overnight.
Northern Star Resources and Evolution Mining rose 2.3% and 2%, respectively.
Mining companies, which were up 1%, joined the rally with sector giants BHP Group and Rio Tinto rising 0.6% and 0.8%, respectively.
Australian shares hit record high; RBA cautious on inflation
Investors found comfort in a local report that global miner BHP was set to reopen its Cerro Colorado copper mine in Chile towards the end of the decade.
American Dollar Exchange Rate