Australia's share market has snapped a three-session losing streak thanks to an uptick in global risk sentiment, but hotter-than-expected jobs figures have increased the likelihood of an interest rate hike.
The S&P/ASX200 rose 65.8 points on Thursday, up 0.75 per cent, to 8,848.7, as the broader All Ordinaries gained 63.9 points, or 0.7 per cent, to 9,172.5.
The top-200 initially surged as investors celebrated a cooling of US-Europe relations, before rolling over when surprise December employment jump narrowed odds the Reserve Bank will lift the cash rate in February.
"It was a funny day, because we saw real strength early on, and the market was up almost one per cent and then we saw the unemployment data come out," Moomoo market analyst Michael McCarthy told AAP.
The numbers to some degree had corrected from overly weak figures in November, he said.
"These monthly numbers do bounce around, so people aren't going to get too carried away, but the immediate interpretation was rate increases coming very soon," Mr McCarthy said.
Rates markets now imply a 60 per cent chance of a rate hike at the Reserve Bank's February meeting, with 25 basis-points of cuts priced-in by May.
Investors were largely unperturbed after three sessions of losses, unloading gold stocks as safe-haven buyers became profit takers, and the recently red-hot raw materials sector turned negative after supporting the broader bourse for most of the week.
Gold prices pulled back from Wednesday's $US4,888 ($A7,185) an ounce record, falling below $US4,800 and dragging the All Ordinaries gold sub-industry 5.6 per cent lower.
Segment giant Northern Star tanked more than eight per cent to $26.18 after slashing production guidance due to crusher outages, extended works and lower grades at its Pogo project.
Elsewhere in materials, Rio Tinto extended gains after a strong quarterly update on Wednesday, while Fortescue swung 5.1 per cent in the other direction after cost jumps overshadowed record iron ore production in the first half.
Mixed miner South32 sailed more than five per cent higher after maintaining production guidance across assets it operates, and remains on track with its capital management program.
Banks returned to form, helping boost the financial sector 1.9 per cent as NAB led its big four competitors higher.
The Commonwealth Bank snagged a handy 2.3 per cent boost to $150.61, reclaiming December lows after slipping to its lowest price since April 2025 earlier in the week.
Energy stocks traded almost three per cent higher as oil prices bounced on the back of easing tensions between the US and its European allies.
The utilities sector continued its run higher, up 5.5 per cent since Monday, with segment giant Origin extending its gains since announcing it would extend the life of Australia's largest coal-fired power station.
Woodside shares leapt 2.9 per cent to $24.20, while Santos surged 5.3 per cent to $6.38 as it improved output in the recent quarter and loaded its first cargo from it Barossa LNG project.
Consumer discretionary stocks rebounded strongly from three days of losses, up 2.4 per cent in a broad-based rally.
Droneshield was the top-200's best performer, trading 9.5 per cent higher after a price target upgrade from Bell Potter.
The Australian dollar spiked to 15-month highs on the back of the jobs report and is buying 68.05 US cents, up from 67.36 US cents on Wednesday at 5pm.
The Aussie was further supported by improving risk sentiment, soaring metals and commodity prices and reports Australia's second-largest superannuation fund, the Australian Retirement Trust, plans to increase its foreign exchange hedging ratios.
ON THE ASX:
* The S&P/ASX200 rose 65.8 points, or 0.75 per cent, to 8,848.7
* The broader All Ordinaries jumped by 63.9 points, or 0.7 per cent, to 9,172.5
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 68.05 US cents, from 67.36 US cents at 5pm AEDT on Wednesday
* 108.02 Japanese yen, from 106.57 Japanese yen
* 58.21 euro cents, from 57.50 euro cents
* 50.67 British pence, from 50.13 British pence
* 116.16 NZ cents, from 115.41 NZ cents
