The S&P/ASX200 fell 8.2 points on Thursday, down 0.09 per cent, to 8719.7, as the broader All Ordinaries lost 28.6 points, or 0.32 per cent, to 8840.4.
The top 200 fell more than 80 points in early trade, but September's 4.7 per cent unemployment print softened the local interest rate outlook, handing boosts to financials, communications and utilities stocks.
The jobs data surprise lowered the likelihood of the RBA hiking the official cash rate above 4.6 per cent when it means in early November, but many analysts expect another increase by the end of 2026.
Investors continued to dump mining stocks, with the raw materials sector plummeting almost four per cent as elevated energy and borrowing costs continued to stifle confidence.
"Miners are sitting in the crossfire of a broad commodity sell-off, rather than one isolated weakness - gold, silver, copper and iron ore have all come under pressure," Vantage senior market analyst Hebe Chen told AAP.
"The near-term outlook remains challenging while higher rates and a stronger US dollar weigh on commodity appetite, although the longer-term structural story, particularly for copper, remains intact."
Shares in mega miners BHP and Rio Tinto each lost almost five per cent, while battery minerals and rare earths producers were also under pressure.
The local gold sub-index fell 2.9 per cent despite a relatively steady gold spot prices of $US4144 an ounce, the recent surge in global bond yields showing no signs of easing.
Financials helped limit the damage at an index level, with gains of roughly three per cent or more for three of the big four banks, while ANZ gained a tidy 1.9 per cent to $39.01.
Insurers were also strong, however investment management and financial services firms underperformed.
Traditionally defensive consumer staples beat out the other 10 sectors with a 3.5 per cent gain as investors bought up the grouping's bigger names.
In company news, Treasury Wine Estates surged more than four per cent after leadership told shareholders they were not interested in carving out Penfolds for a separate listing, and that they would seek fair prices for discount labels on its chopping block.
The Australian dollar is buying 69.51 US cents, down from 69.97 on Wednesday at 5pm AEDT.
ON THE ASX:
* The S&P/ASX200 lost 8.2 points, or 0.09 per cent, to 8719.7
* The broader All Ordinaries fell 28.6 points, or 0.32 per cent, to 8840.4
One Australian dollar trades for:
* 69.51 US cents, from 69.97 US cents at 5pm AEST on Wednesday
* 109.74 Japanese yen, from 110.78 Japanese yen
* 61.97 euro cents, from 62.45 euro cents
* 52.50 British pence, from 52.73 pence
* 123.82 NZ cents, from 124.51 NZ cents
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