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Australian iron ore miners soar on China stimulus optimism

Shares of Australian iron ore miners rose one of the most in over 2 years on Tuesday after the country's. top trading partner China's promise for more policy stimulus to. stimulate financial development raised the potential customers for its residential or commercial property. sector.

The mining index advanced as much as 4.1% in its. best intraday dive because mid-November 2022. It was 3.2% greater. at 0400 GMT, versus a dip in the standard ASX200 index.

Shares of Rio Tinto, the world's most significant iron ore. producer, advanced as much as 5.5% in their most significant intraday. gain because mid-November 2022. They were last 4.2% higher.

BHP Group, the world's largest listed miner, rose. 3.2%, set for its finest day given that late September, while No. 4. producer Fortescue leapt 6% to a near two-month high.

The rush comes after months of sell-offs in miners of iron. ore, used to make steel, as rates remained under pressure due. to subdued need from China's debt-ridden home sector, a. essential client of steel.

China is Australia's greatest trading partner and buys around. 80% of its iron ore, the nation's biggest export.

Now, China's very first shift in policy position in 14 years has. revived optimism in Australian miners. Beijing will adopt an. properly loose financial policy together with a more proactive. fiscal policy next year to spur development, the Politburo was priced quote. as saying on Monday.

To the degree that the Chinese federal government increases. monetary and financial stimulus ... this is bullish in the short. term for Australian miners who produce iron ore, copper,. metallurgical coal and other commodities, said Jon Mills, a. mining equity analyst at Morningstar.

But we are sceptical that it will be enough to overcome. what we view as long-lasting structural headwinds within the. country.

Miners have lost around 13% this year and are heading for. their worst year considering that 2015, making them the worst-performing. sector in Australia this year.

(source: Reuters)