The People’s Bank of China cut the reserve requirement ratio by 50 basis points and the seven-day reverse purchase rate to 1.5%, resulting in 4.2% and 4.1% gains for China’s Shanghai Composite and Hong Kong's Hang Seng, respectively.
The stimulus measures are boosting copper prices as traders anticipate stronger demand from one of the world's largest metal consumers. In response, mining giants Rio Tinto plc ADR (NYSE:RIO), Southern Copper Corp (NYSE:SCCO), and Freeport-McMoRan Inc (NYSE:FCX) are enjoying tailwinds.
RIO is up 4.4% to trade at $67.44 at last check, on track for its best single-day percentage gain in just over one year. The shares are trading at their highest level since July, and also pacing for their first close above the 80-day moving average in just as long. For 2024, RIO still carries a 13.6% deficit.
Last seen up 7.4% to trade at $113.91, SCCO is adding to a 34.2% year-to-date lead and eyeing its best day since November 2022. The security could today score its fourth win in the last four sessions on its way to conquer the 120-day moving average, which capped two August rallies.
FCX is up 7.8% to trade at $48.67 at last glance, extending its bounce off a familiar floor at the $34 level. Shares have also conquered overhead pressure at the $44 region to hit their highest level in roughly two months. In the last 12 months, the stock added more than 30%.
