Australian shares experienced a broad rally shortly after the market opened, mirroring the positive sentiment from Wall Street. This upbeat movement followed the latest US jobless claims data, which eased concerns about a potential economic recession in the United States.
The benchmark S&P/ASX 200 Index climbed 0.7% or 52.4 points, reaching 7734.4. This rise came on the heels of a 0.2% decline on Thursday, indicating a rebound in investor confidence. Of the 11 sectors, ten saw gains, with the technology sector leading the charge with a notable increase of 2.8%.
Among the standout performers was Life360 Inc (ASX: 360), a family tracking app that surged 17.5%. This impressive jump followed an upgrade in the company’s full-year revenue guidance, driven by a substantial increase in its user base and ambitious global expansion plans. RBC Capital Markets analyst Wei-Weng Chen praised the company’s results, highlighting the record-breaking number of new circles added in the first half of 2024.
News Corp (NASDAQ:NWSA) (ASX: NWS), the publishing and broadcasting conglomerate controlled by the Murdoch family, also saw significant gains. The company announced plans to sell its majority stake in the Australian pay television platform Foxtel, a move that contributed to its positive performance.
Conversely, insurance group QBE Insurance Group Ltd (ASX: QBE) was the largest laggard on the ASX. Despite reporting a doubling of its after-tax profits to USD 802 million (AUD 1.2 billion) for the half-year period ending June 30, QBE’s share price fell by 3%. The company also announced an increase in its dividend, but these positive financial metrics were overshadowed by the stock’s decline.
The major banks and mining companies also experienced gains, with ANZ Banking Group Ltd (ASX: ANZ) and Rio Tinto Ltd (ASX: ASX:RIO) both rising by 1%.
In international news, US weekly jobless claims fell more than anticipated, which alleviated concerns about an imminent recession. This positive development contributed to the local dollar trading just below the US 66¢ mark, a level it had not seen in two weeks. The Australian dollar has strengthened by 1.3% since Monday and is set to record its highest weekly gain since May.
Among other notable stock movements, REA Group Ltd (ASX: REA), a major player in the real estate sector, saw its shares rise by 3.2% following a report of increased profit for the full year ending in June. On the flip side, Nick Scali Ltd (ASX: NCK), a furniture retailer, experienced a 4.6% decline in its share price after reporting an 18.8% drop in full-year profit compared to the previous year.
The ASX demonstrated resilience with broad-based gains, though certain sectors and companies faced their own challenges.