BHP climbs 2% as mining stocks surge
Make us a preferred source
Make us a preferred source on Google
The news: Mining stocks were among the biggest winners on the ASX after new data pointed to a stabilising property market in China and gold resumed its weeks-long rally.
The numbers: Iron ore miners BHP (2.39%), Rio Tinto (1.33%), Fortescue (1.63%) and Champion Iron (3.6%) were all higher at 2:25pm AEDT after figures by China Real Estate Information Corp showed land plots in key Chinese cities sold at high premiums in recent weeks, Bloomberg reported.
Gold miners — led by Perseus Mining (3.65%), West African Resources (3.49%) and Newmont (3.11%) — also gained as spot gold settled near a record high.
Lithium stocks Liontown Resources (7.56%), Mineral Resources (6.63%), IGO (4.57%) and Pilbara Minerals (3.52%) soared, after a sector-wide selloff on Tuesday.
Materials, up 1.69%, was the best performing sector as the ASX 200 index added 0.21%.
The context: The new China figures showed that Beijing, Zhengzhou, Shenzhen and Hangzhou each recorded premiums in land auctions this year, bolstered by supportive policies and improving market confidence.
A separate Shanghai Securities News report, citing China Index Academy data, showed that transaction value among 300 cities in China rose 8% in January compared with last year, while the average floor price jumped 33%.
Construction activity in the world’s second-largest economy has remained lacklustre in recent years amid a property debt squeeze, weakening demand for iron ore imports.
Meanwhile, lithium stocks clawed back losses from earlier in the week, when China's Contemporary Amperex Technology (CATL) and Jiangsu Lopal Tech announced they were restarting their lithium carbonate refinery after a five-month halt.
The rally tracked gains by New York-listed lithium giant Albermarle overnight, after it swung to quarterly profit, and Shenzhen-listed CATL, after the world's largest electric vehicle manufacturer applied for a $5 billion listing in Hong Kong.
The sources: Bloomberg, Reuters, Albemarle earnings release
