Investing.com-- Australian miners rallied on Tuesday after the country’s top trading partner China pledged more stimulus measures to boost its sluggish economy.
China has committed to implementing more proactive fiscal stimulus measures and adopting moderately looser monetary policies in 2025, the government signaled during a Politburo meeting on Monday.
Australia’s heavyweight mining sub-index, the S&P/ASX 300 Metals & Mining jumped nearly 4% on Tuesday after China’s announcement.
Gains were led by iron ore giant Fortescue (ASX:FMG) climbing nearly 7% to its highest level in two months.
World's largest iron ore producer Rio Tinto Ltd (ASX:RIO) rose more than 5%, while mining behemoth BHP Group (ASX:BHP) jumped nearly 4%.
Lithium miner Pilbara Minerals Ltd (ASX:PLS) surged 7.2%, while Liontown Resources Ltd (ASX:LTR) and IGO Ltd (ASX:IGO) gained 3.5% and 5.8%, respectively.
China's construction, manufacturing, and energy sectors are major consumers of Australian minerals. Policies aimed at stimulating China's economy, such as infrastructure investments or easing monetary policies, can lead to higher imports of raw materials, supporting mining stock prices.
However, the broader Australian benchmark index S&P/ASX 200 was 0.4% lower on Tuesday, ahead of a Reserve Bank of Australia’s interest rate decision, due later in the day.
Investors will now focus on China’s annual Central Economic Work Conference, which is set to take place later this week.