AFTERNOON REPORT
(4.30pm AEST)

The local share market closed marginally higher Thursday, although off earlier gains due to a disappointing jobs report. The All Ordinaries Index (XAO) gained 6.9pts or 0.2pct to close at 4269.8 after reaching a high of 4297.9 in early trade.

Official Bureau of Statistics data released Thursday showed 9,700 jobs were lost in the Australian economy in August, sending the unemployment rate up from 5.1pct to 5.30pct.

Before the jobs numbers were released, the local share market had been recording gains of around 0.5pct due to a strong performance on European and US markets overnight.

Looking at some of the key movers: shares in the Commonwealth Bank (CBA) eased 0.6pct to $47.22 while the National Australia Bank (NAB) was firmer by 1.2pct to $23.21. Index leader BHP Billiton (BHP) came off Wednesday's highs, falling 0.2pct to $38.17 however a jump in the crude oil price saw refiner Caltex (CTX) jump 8.9pct to $11.22.

Retail stocks were generally strong. JB Hi-Fi (JBH) rose 4.3pct to $15.23 while Harvey Norman (HVN) was up 2.9pct to $2.12.

Foster's Group (FGL) gained 0.2pct to $4.85. The Takeovers Panel Thursday dealt a blow to Foster's suitor, claiming S-A-B Miller's submission to the panel was "without foundation, frivolous and petty." The South African brewer launched an application to the panel two weeks after launching its hostile $9.5 billion bid for Foster's, claiming unacceptable circumstances relating to information provided at Foster´s full-year results.

The labour force data revealed Thursday showed total employment fell by 9,700 people in August. Economists had tipped job gains of around 10,000. The July result was revised to show job losses of 4,100 (previously job losses of 100). Full-time employment fell by 12,600 in August and part-time jobs rose by 2,800. The annual employment growth rate eased from 1.7pct to 1.2pct - marking the weakest growth rate in 20 months.

The unemployment rate rose from 5.1pct to 5.3pct, a 10 month high. The participation rate held steady at 65.6pct.

Average hours worked rose 0.3pct in August after rising by 0.2pct in July. Over the year average hours worked rose by 2.2pct.

Across the states and territories unemployment rates in August were: NSW 5.4pct (5.3pct in July); Victoria 5.1pct (5.1pct); Queensland 6.2pct (5.7pct); South Australia 5.1pct (5.2pct); Western Australia 4.4pct (4pct); Tasmania 5.2pct (5.1pct); Northern Territory 4.2pct (4.1pct); ACT 4pct (4pct).

NSW led the job gains in August (up 3,700) followed by Queensland (up 1,800). Western Australia led the job losses (down 5,200), followed by South Australia (down 4,900), Victoria (down by 3,300), Northern Territory (down 800 in trend terms), Tasmania (down by 600) and ACT (down 100 in trend terms).

The working age population rose by 15,900 in August after lifting by 15,800 in July. The working age population grew by 1.3pct over the past year - the smallest gain in 11-years.

The Australian dollar eased following the labour data and at 4.30pm AEST was worth US105.9c, £0.6641 and €75.3c.

Markets in the region generally performed better, with Japan's Nikkei up 21pts or 0.2pct. Japanese machine orders fell 8.2pct in July from June, compared with expectations for a 4pct fall.

The Bank of Korea today kept interest rates unchanged at its meeting, despite Governor Kim Choong-soo citing the ´´challenging´´ effort to keep inflation under control. South Korea's KOSPI index was up 13pts or 0.7pct at 4.30pm AEST.

On the local market, 2.4 billion shares were traded, worth $4.98 billion. 609 were up, 421 were down and 346 were unchanged.

At 4.30pm AEST on the ASX24, the futures contract was at 4185, down 11pts.

Ahead Thursday night; U.S. President Barack Obama is set to unveil a potential $300 billion jobs package, seen as a bailout for the struggling labour market.

Weekly jobless claims, trade data and consumer credit are also being released.

(From Juliette Saly, CommSec Market Analyst)