SYDNEY/WELLINGTON, Nov 12 (Reuters) - Australian shares trimmed losses on Thursday after employment data surged past all expectations, but weakness in energy firms kept a lid on the market as crude oil struggled at two-month lows.
In an unambiguously upbeat report, employment jumped 58,600 last month, driving the unemployment rate down to a five-month low of 5.9 percent. Market consensus was for a modest 15,000 increase in jobs and a steady jobless rate of 6.2 percent.
The S&P/ASX 200 index .AXJO , which had been down as much as 0.8 percent, bounced back to be nearly flat on the day. It was a mere 0.04 percent, or 2.02 points, lower at 5,120.60 by 0140 GMT.
"We are always wary of reading too much into the monthly labour force 'lottery', but even looking through the noise it's hard not to conclude that current labour market conditions in Australia are strong," said Justin Fabo, senior economist at ANZ.
The major banks were all higher led by a 1.5 percent rise in Australia and New Zealand Banking Group ANZ.AX . Westpac Banking Corp WBC.AX climbed 1.3 percent.
In contrast, energy firms remained in the doldrums amid a gloomy outlook for crude oil. urn:newsml:reuters.com:*:nL3N13705X
Woodside Petroleum WPL.AX shed 1.3 percent. Santos STO.AX plunged 16.3 percent after completing a A$2.5 billion capital raising program.
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New Zealand's benchmark NZX 50 index .NZ50 barely moved as it consolidated after hitting record highs for five straight sessions over the past week.
The index ticked up 17.19 points, or 0.28 percent to 6,030.72, adding to Wednesday's 10.7-point gain. It is on track to end the week in the red after a steep fall on Tuesday, leading to its worst performance since the week ended Oct.2.
For the year so far, the index is still up over 8 percent.
a2 Milk Company ATM.NZ was the most traded stock for a second day, up 5.8 percent, after media reports the dairy company was considering building its own infant formula plant in Australia, which is in the midst of a baby formula shortage.