- Bloomberg World Mining Index touches an eight-month high
- Aluminum rises to highest since October in London trading
Mining stocks rose to the highest in eight months and aluminum gained the most this year on speculation that raw-materials demand in China will turn around after years of concern over worsening economic growth.
Data Friday showed a pickup in activity ranging from industrial production to fixed-asset investment in March, adding evidence that monetary and fiscal easing are having an impact in the Asian nation, the largest metals consumer. The People’s Bank of China injected the most funds into the financial system via open-market operations in almost two months on Wednesday. The Bloomberg World Mining Index rose as much as 1.7 percent to the highest since August, helped by gains in Vancouver-based Teck Resources Ltd.
“You can say from the micro perspective, the Chinese figures are improving,” Richard Fu, the head of Asia & Pacific at Amalgamated Metal Trading Ltd. in London, said in a telephone interview. “So people start to think in the long term that Chinese stimulus measures are being reflected in the figures.”
Aluminum for delivery in three months gained 2.2 percent to settle at $1,622 a metric ton at 5:50 p.m. on the London Metal Exchange, the biggest increase since Dec. 4. The commodity touched $1,625.50, the highest since October.
In other metals:
- Copper futures for July delivery added 0.6 percent to $2.2455 a pound on the Comex in New York
- On the LME, copper, zinc, nickel, lead and tin also gained.