Optimism for a Persian Gulf peace deal has supported the Australian stock market's best day since early April, helped by a surprise uptick in unemployment that softened the odds of further interest rate hikes.
The S&P/ASX200 surged 125.1 points on Thursday, up 1.47 per cent, to 8,621.7, as the broader All Ordinaries gained 123.8 points, or 1.42 per cent, to 8,840.8.
"Today's ASX rebound is a classic relief rally after weeks of heavy selling, with strong Wall Street leads, Nvidia-driven tech optimism and a slight cooling in geopolitical tension all arriving at the same time - giving the market the oxygen it was waiting for," Vantage senior market analyst Hebe Chen told AAP.
"The weaker April jobs report added the final piece, taking some heat out of near-term Reserve Bank hike expectations and giving equities a cleaner runway to bounce."
