MARKET COMMENT:S&P/ASX 200 Off 0.7%;Jobs Data Dashes Easing Hopes

0125 GMT [Dow Jones] Australia's S&P/ASX 200 hit a 7-day low of 5053.4 after rising briefly from 5080 to 5094.8 on stronger-than-expected February employment data. Employment rose 71,500 vs 10,000 expected by the market, with full-time jobs up 17,800 and part-time jobs up 53,700. Unemployment remained at 5.4% as labor-force participation rose. Initial optimism about the economic outlook was replaced by concern that Reserve Bank of Australia may move to a tightening bias. The Australian dollar jumped 0.7% after the data, adding to the pressure on resources stocks, with BHP (BHP.AU), Rio Tinto (RIO.AU) and Fortescue (FMG.AU) down 1.8%-6%. High-yield stocks have also been affected by the change in interest rate expectations, with Westpac (WBC.AU), NAB (NAB.AU) and Telstra (TLS.AU) down 0.5%-0.7%. Traders are looking to see if the index closes below the 20-day moving average support at 5071, and the uptrend line drawn from Nov. 16, currently located around 5078. A weak close could generate a technical sell signal which would target the Feb. 26 low at 4978.4. The index is last down 0.7% at 5056.2. ([e-mail])

 
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