Aussie stocks close over 1pc up

MELBOURNE - The Australian share market has closed up more than one per cent, supported by stronger than expected jobs data.

The benchmark S&P/ASX200 index finished up 72.9 points, or 1.55 per cent, at 4768.6 points, while the broader All Ordinaries index gained 67.4 points, or 1.44 per cent, to 4763.3 points.

On the Sydney Futures Exchange at 1615 AEST, the September share price index contract was 50 points higher at 4766 on 30,537 contracts.

IG Markets research analyst Ben Potter said the market rose on the back of new unemployment data and Alcoa Inc's profit result in the United States.

"They (Alcoa) were expected to post another loss and they posted a profit, so they were up about seven per cent," Mr Potter said.

"Alcoa is important ... it sets the mood for the earnings season and there is an expectation that analysts have set the bar far too low," he said.

"Coupled with the huge jump in job numbers, we have seen the market really take that to heart and fly high," he said.

Official data on Thursday showed the number of employed Australians rose by 40,600 (0.4 per cent), seasonally adjusted, in September, more than offsetting a fall in August.

Financial stocks benefitted from the positive sentiment, with National Australia Bank leading the way and rising $1.33, or 4.43 per cent to $31.35.

Commonwealth Bank rose $1.67 to $52.97, Westpac rose 79 cents to $26.30, ANZ put on 89 cents to $24.74 and Macquarie gained 37 cents to $56.42.

"The thinking there is that the unemployment numbers falling are pretty good for the banks because it means their bad debts are less likely to increase," Mr Potter said.

"Probably in the next few days there is the very good possibility of re-ratings coming through from the brokers (for banks) as they factor in these unemployment numbers.

"These banks have made massive provisions for bad debts, and there could be some writebacks," Mr Potter said.

On Thursday Westpac lost a New Zealand High Court judgment that will cost Australia's second biggest lender $918 million (A$760.22 million).

Big miners posted rises, with BHP Billiton up 35 cents to $38.16 and rival Rio Tinto was 55 cents stronger at $61.30.

BHP Billiton told the market on Thursday it would probably not know for two weeks how Tuesday's mechanical failure at its Olympic Dam mine in South Australia would affect production.

Spot gold hit a fresh record high of US$1054.30 per fine ounce at 1310 AEDT, and at 1700 AEDT was trading at $1052.43, up US$9.85 on Wednesday's closing price of US$1042.58 per ounce.

Gold miners had small gains, with Newcrest up one cent to $35.16, Newmont seven cents higher at $5.25 and Lihir three cents stronger at $3.17.

Energy stocks finished the day mixed, with Woodside Petroleum losing 24 cents to $50.75 and rival Oil Search up 21 cents to $6.60.

Santos was off two cents to $15.23 and Origin was up eight cents to $16.53.

Fairfax stocks had a good day, jumping 10.5 cents, or 6.65 per cent, to $1.685, while rival News Corp gained 24 cents to $15.51 and its non-voting scrip rose 28 cents to $13.38.

Consolidated Media put on one cent to $3.00.

Mr Potter said media stocks gained after a Credit Suisse note to clients indicated Australia's advertising recovery was gaining momentum.

The major retailers also closed stronger.

Coles owner Wesfarmers gained 30 cents to $26.40, Woolworths grew two cents to $29.23, department store group David Jones rose one cent to $5.53 and Harvey Norman rose 20 cents to $4.46.

At 1652 AEDT the top-traded stock by volume was minerals explorer Renison Consolidated, with 162.16 million shares worth about $1.6 million changing hands.

Its shares were up 0.2 cents, or 28.57 per cent, at 0.9 cents.

Preliminary national turnover was three billion shares worth $6.02 billion, with 683 stocks up, 461 down and 306 unchanged.

- AAP