The Australian dollar rose, ending a five-day drop against the yen, as Asian stocks advanced and signs the nation’s labor market is improving spurred demand for higher-yielding assets. Australia’s currency reversed earlier losses versus the greenback after an industry report showed job advertisements climbed for a second month in June and economists said data this week will show employment increased for a fourth month. Economists say the Reserve Bank of Australia will keep its benchmark interest rate at 4.5 percent tomorrow, compared with as low as zero in the U.S. and 0.1 percent in Japan.

“Stock markets are in positive territory and that’s giving some guidance to future growth,” said Richard Grace, chief currency strategist in Sydney at Commonwealth Bank of Australia, the nation’s largest lender. “The relative health in the local economy is probably providing some support” for the Australian dollar.

Australia’s currency rose to 74.36 yen as of 4:17 p.m. in Sydney from 73.85 yen in New York last week, after earlier falling as much as 0.6 percent. The currency gained 0.5 percent to 84.55 U.S. cents. New Zealand’s dollar advanced 0.6 percent to 60.84 yen, and climbed 0.5 percent to 69.19 U.S. cents.

Both currencies strengthened as the MSCI Asia Pacific Index of shares rose 0.2 percent, snapping a four-day decline.

Australia’s dollar rallied after a report from Australia & New Zealand Banking Group Ltd. showed jobs advertised in newspapers and on the Internet gained 2.7 percent in June, the same as the previous month.

employment Rolls

The number of people employed in Australia increased by 15,000 in June, after climbing 26,900 in May, according to a Bloomberg survey before the July 8 statistics bureau report.

RBA Governor Glenn Stevens has boosted borrowing costs six times since early October from a half-century low of 3 percent, citing an economic expansion the central bank forecasts will almost double to 4 percent in the next two years.

The interest-rate increases helped stoke a 27 percent gain in Australia’s dollar in the 12 months through April 30, making it the second-best performer among the world’s 16 most-traded currencies. The Aussie has since pared around a third of that rally amid signs the global economy is cooling.

Gains in the Australian and New Zealand dollars were tempered before a U.S. report tomorrow that economists said will show service industries in the world’s largest economy expanded at a slower pace.

The Institute for Supply Management’s index of non- manufacturing businesses, which make up about 90 percent of the U.S. economy, fell to 55 in June from 55.4 in May, according to a Bloomberg survey. Readings above 50 signal expansion.

‘More Concerned’

“Markets have become more concerned about the global outlook,” said Jonathan Cavenagh, a currency strategist at Westpac Banking Corp. in Sydney. “With that kind of background, it’s hard to see the Aussie and kiwi rallying.”

Australian government bonds rose. The yield on the benchmark 10-year note fell three basis points to 5.07 percent, according to data compiled by Bloomberg. The 4.5 percent note due April 2020 gained 0.24, or A$2.40 per A$1,000 face amount, to 95.68. New Zealand’s two-year swap rate, a fixed payment made to receive floating rates, was little changed at 4.15 percent.