ASX miners gain on prospect of further China stimulus
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The news: Miners gained on the ASX, driven by expectations of further stimulus measures by Chinese authorities.
The numbers: Iron ore heavyweights Champion Iron (2.6%), Rio Tinto (1.9%), Fortescue (1.7%) and BHP (1.4%) were all trading higher by 1:30pm AEDT, as the materials sector added 1.5%. Troubled Mineral Resources also edged up (0.2%).
Gold miners rose too, with Capricorn Metals (4.9%), Genesis Minerals (4.4%) and Evolution Mining (3.7%) among the top 10 performers across the ASX 200.
The context: The mining rally came despite Singapore iron ore futures falling 1.45% to USD104 ($156.08) per tonne and the spot gold price lowering 0.28% to USD2,699 per ounce.
However, China is expected to announce further stimulus measures at the conclusion of its legislature meeting on Friday. There is optimism that authorities may announce stronger policies in response to the prospect of potential tariffs threatened by US president-elect Donald Trump.
The source: Bloomberg
