Australia's share market has bounced from a seven-week low on hopes of a deal between Iran and the United States, after President Donald Trump said negotiations were in the final stages.
The S&P/ASX200 jumped 138 points by midday on Thursday, to be up 1.62 per cent at 8,634.6, as the broader All Ordinaries gained 140.1 points, or 1.61 per cent, to 8,857.1.
"The story itself looked a bit like a rinse-and-repeat job: a reassurance by US President Donald Trump – the cynics would say in a bid to jawbone oil and equity prices – that the US and Iran are in the 'final stages' of negotiations," Capital.com senior market analyst Kyle Rodda said.
A higher-than-expected April unemployment rate of 4.5 per cent gave the local indices an extra boost, because the outcome improves the odds the Reserve Bank will hold the cash rate steady in June, rather than hike for a fourth straight time.
