Global Markets | Australian shares hit record high on earnings optimism; banks, miners lead broad rally

Australian shares surged to a record high on Thursday as a strong earnings season drove sweeping gains across sectors, with heavyweight banks and miners spearheading the advance.

The S&P/ASX 200 ‌index climbed ⁠0.9% to 9,086.20 ⁠points, drumming up a fourth straight day of gains, hitting an all-time high of 9,118.3 earlier in the session.

The benchmark has gained 1.9% in four sessions.


The index clearing a record is "notable", but the 9,000 level remains a key psychological barrier for investors, said Marc Jocum, senior product and investment strategist at Global X ETFs. A sustained move higher is likely to depend on how the final ⁠week of ‌earnings season plays out, he added.

Results from majors like Woodside Energy, Woolworths, Coles and Qantas will determine whether "fresh earnings catalysts can drive ⁠the market meaningfully higher", Jocum added.

Earlier in the day, data showed unemployment holding at a surprise 4.1% in January, below estimates, nudging markets to price an 80% chance of a May hike to 3.85% and fully factor in a rise to 4.10% by August.

Banks, punished last year for frothy valuations, climbed 1.4% to a record high as robust February-season profits and expectations of higher-for-longer rates buoyed the sector. The "Big Four" advanced between ‌0.7% and 2.7%.

Miners rose 1.4% after copper prices gained on Wednesday, with Rio Tinto up 2% on the day. The mining giant reported its annual earnings after the ⁠market's close, with its underlying profit missing expectations on back of weaker iron ore prices.

Its rival BHP, which delivered upbeat results on Tuesday due to robust copper earnings, gained 1.8%.

Among individual stocks, coal miner Whitehaven slid 4.9% after reporting a surprise first-half loss, weighing on the energy sub-index, which nonetheless closed up 3.8%.

Shares of buy-now, pay-later service provider Zip Co plummeted 34.4%, after it missed estimates for first-half operating earnings.

In New Zealand, the benchmark S&P/NZX 50 index advanced 1.5% to 13,444.20.