Australian Shares Jump as Global Relief Rally Reaches Sydney

Australian shares rose sharply, with the S&P/ASX 200 index climbing about 1.4%, as a global relief rally driven by softer US employment data reached Sydney. The weaker-than-expected US jobs report eased fears that the Federal Reserve would raise interest rates in the near term, boosting appetite for equities and lifting markets across the Asia-Pacific region. Gains were broad-based, tracking a strong lead from Wall Street and echoing rallies in Japan, South Korea and Hong Kong, where indices advanced as rate worries receded. Lower expected interest rates tend to support share valuations and ease pressure on borrowers, a helpful backdrop for an Australian market with significant weightings in banks and resources. Softer global rate expectations can also influence the Reserve Bank of Australia's own policy path and the local currency. Analysts noted that sentiment had swung quickly from the previous session's caution, underscoring how sensitive markets remain to shifts in the outlook for US monetary policy. With US markets closed for the Independence Day holiday, trading volumes were lighter than usual, which can amplify moves.