Iron ore miners lead ASX rally on China consumption plan
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The news: Iron ore miners led an early rally on the ASX, boosted by the announcement of a "special action plan" by the Chinese government overnight to support domestic consumption.
The numbers: Australia's three largest mining stocks Fortescue (4.1%), Rio Tinto (2.4%) and BHP (1.7%) were all trading higher at 11:15am AEDT. Champion Iron (5.1%) also advanced.
Materials, up 1.6%, was the best performing sector as the ASX 200 index added 0.65%.
The context: On Sunday, China's State Council unveiled a plan, issued to all regions and departments, aiming to "vigorously boost consumption, expand domestic demand in all directions, improve consumption capacity by increasing income and reducing burdens".
The slowdown in China's property market has seen iron ore prices tumble in recent months, as the country's steel-intensive property sector battles a prolonged crisis, with construction activity remaining lacklustre.
