The Australian share market has finally bounced back strongly from Monday's sharp sell-off after better-than-expected US jobless figures belied claims the American economy is headed for recession.
The benchmark S&P/ASX200 index on Friday finished up 95.7 points, or 1.25 per cent, to a lucky 7,777.7 while the broader All Ordinaries gained 104.2 points, or 1.32 per cent, to 7,990.7.
The ASX200 ended the week down 2.1 per cent after its 3.7 per cent plunge on Monday, which came after some worse-than-expected US economic data led to fears about America's economic health.
But overnight the US Labor Department reported 233,000 Americans filed jobless claims last week, 17,000 fewer than the week before and less than the 240,000 claims economists were expecting.
While the figures are considered second-tier and just a week's worth of data, it was apparently enough to reassure anxious investors.
AMP chief economist Shane Oliver noted that shares rarely go in a straight line and the plunge across Friday and Monday had left them oversold.
"The bounce could run a bit further, particularly as US economic data beyond the rise in unemployment is still not indicating that a recession is upon us," he wrote.
But Dr Oliver cautioned there still could be further falls over the next few months given that valuations remain stretched, a recession risk is high in the US and Australia and there's the chance of a war between Israel and Iran after Israel's assassination of Hamas leader Ismail Haniyeh.
Every sector was in the green on Friday with the tech sector gaining the most, rising 3.1 per cent.
Life360 was the biggest gainer in the ASX200, soaring 18.3 per cent to $17.59 after the family tracking company reported it had grown quarterly revenue 20 per cent to $US84.9 million ($A128.7 million).
"Q2' 24 was excellent for Life360, as we set new records in business and financial performance, and completed our US IPO," said co-founder and chief executive Chris Hulls.
News Corp rose 7.6 per cent to an all-time high of $44.54 as the media giant announced its fourth-quarter revenues had grown six per cent to $US2.58 billion ($A3.9 billion).
Chief executive Robert Thomson touted the results and said News Corp's partnership with ChatGPT developer OpenAI was "expected to be lucrative".
News Corp also said it was considering a sale of Foxtel Group, which includes its Binge and Kayo Sports streaming businesses, following some third-party interest in a transaction.
REA Group rose 6.8 per cent to $202.36 after the realestate.com.au owner said that its net profit climbed 24 per cent to $461 million in 2023/24, and predicted good things for Australia's property market this financial year.
In the financial sector, QBE dropped 1.7 per cent to a six-month low of $16.05 despite the insurer doubling its first-half profit to $US802 million ($A1.2 billion).
QBE was one of just 18 of the 200 companies in the ASX200 to close in the red, however.
ANZ led gainers among the big retail banks, rising 1.1 per cent to $129.55. NAB added 0.9 per cent to $35.63, Westpac advanced 0.7 per cent to $28.05 and CBA was climbed 0.3 per cent to $129.55.
In the heavyweight mining sector, BHP rose 1.6 per cent to $40.86, Rio Tinto added 2.0 per cent to $116.47 and Fortescue grew 2.2 per cent to $18.49.
The Australian dollar was at a two-week high against its US counterpart, buying 66.02 US cents, from 65.59 US cents at Thursday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday up 95.7 points, or 1.25 per cent, at 7,777.7.
* The broader All Ordinaries gained 104.2 points, or 1.32 per cent, to 7,990.7.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.02 US cents, from 65.59 US cents at Thursday's ASX close
* 97.13 Japanese yen, from 95.76 Japanese yen
* 60.42 euro cents, from 59.97 euro cents
* 51.72 British pence, from 51.63 pence
* 109.50 NZ cents, from 109.30 NZ cents
Wra
