S&P/ASX 200 Index (ASX: XJO) mining stocks are leading the charge higher today.
As we head into the lunch hour on Tuesday, the ASX 200 is up a healthy 0.3%. The S&P/ASX 300 Metals & Mining Index (ASX: XMM), meanwhile, is surging 3.2%.
Here’s how these top mining shares are performing at this same time:
- BHP Group Ltd (ASX: BHP) shares are up 3.7%
- Rio Tinto Ltd (ASX: RIO) shares are up 4.1%
- Fortescue Metals Group Ltd (ASX: FMG) shares are up 4.7%
So, why are these ASX 200 mining stocks having such a cracking session today?
ASX 200 mining stocks lift on China growth hopes
Much of the boost enjoyed by BHP, Rio Tinto, Fortescue, and a raft of other miners today comes thanks to China’s Politburo.
The Chinese Communist Party’s top leaders have been discussing the government’s economic policies for the half year ahead.
As you’re likely aware, China’s economy has been struggling to attain its growth targets as the nation reopens from its lengthy pandemic closures.
Its steel-hungry real estate sector has been a notable laggard. That slump in demand from the world’s number two economy saw iron ore trade at recent lows of US$99 per tonne on 25 May.
But ASX 200 mining stocks are lifting today alongside the price of iron ore, which is up 0.9% overnight to $US113.65 per tonne.
Copper prices also got a boost, up 0.8% to US$8,517 per tonne.
This comes after the Politburo flagged more stimulus measures to help boost the property sector and fuel consumer spending.
Now what?
ASX 200 mining stocks are lifting alongside the price of their primary revenue-producing metals today.
But investors don’t have a lot of specifics to work with.
While China’s top leaders signalled more support to boost economic growth, details were scant. And so far, there’s been no word of any major fiscal stimulus rollout or drastic cuts to interest rates.
Commenting on the Politburo’s meeting, Kiyong Seong, lead Asia macro strategist at Société Générale, said (quoted by Bloomberg):
Overall, the Politburo fell short of so-called ‘bazooka stimulus. I don’t expect a sustained impact on the market unless there is a series of strong concrete steps.
We may not have seen that bazooka stimulus yet, but that’s not holding back investor enthusiasm for ASX 200 mining stocks today.
