Mining, energy shares jump on China stimulus plans
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The news: ASX-listed mining and energy stocks have soared in early trading after China promised to step up support for its beleaguered economy through an easier monetary policy in 2025.
The numbers: Iron ore miners BHP (3.84%), Rio Tinto (4.8%), Fortescue Metals (7.01%) and Mineral Resources (9.39%) all rallied as did lithium miners Pilbara Minerals (9.3%), Liontown Resources (5.74%) and IGO (5.65%).
Oil and gas majors Woodside (1.35%) and Santos (0.84%) also gained on the back of higher oil prices.
The context: The gains come after China’s Politburo on Monday announced a shift to a "moderately loose" monetary policy for 2025 in the first move towards monetary easing in 14 years, paired with a "more proactive" fiscal policy.
No details on spending or interest rate adjustments were provided, but the decision comes as China seeks to address weak growth, deflation pressures and threats from US tariffs under Donald Trump’s second administration.
Economists widely expect the announcements to translate into further rate cuts, asset buying and a wider fiscal deficit at Beijing's annual legislative session in March.
