Why are ASX mining shares going gangbusters today?

ASX mining shares are higher across the board today following news that the world's top metals consumer, China, will implement "more proactive" fiscal policy to support its flagging economy.

The S&P/ASX 200 Materials Index (ASX: XMJ) is the leading market sector today, up 3.34%. Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) is down 0.42%.

According to the Australian Financial Review (AFR), Morgan Stanley economist Robin Xing said yesterday's Politburo meeting in China "sent the most aggressive stimulus tone in a decade".

The Politburo, which meets once per month, said it would introduce measures to boost domestic consumption and stabilise the property market and Chinese share market.

This comes ahead of the important Central Economic Work Conference, which begins on Wednesday. At the conference, new year priorities will be set, including China's 2025 target for economic growth.

ASX mining shares in the green on Tuesday

ASX iron ore shares are well into the green today, with BHP Group Ltd (ASX: BHP) shares up 3.92% to $42.18 and Fortescue Ltd (ASX: FMG) shares up 6.68% to $20.54.

Rio Tinto Ltd (ASX: RIO) shares are up 4.97% to $125.43, while iron ore and lithium miner Mineral Resources Ltd (ASX: MIN) has lifted 6.23% to $36.32.

In overnight trading, there was a 2.15% lift in the CNY iron ore price to US$111.35 per tonne. The 62% iron ore price fell 2.05% to US$104.11 per tonne.

ASX gold shares are also rising today. The gold price is currently trading at US$2,659.16, up 0.99%. Yesterday, gold hit new record levels at around US$2,675 per tonne.

In today's trading:

• The Northern Star Resources Ltd (ASX: NST) share price is up 2.12% to $16.86
• The Newmont Corporation CDI (ASX: NEM) share price is up 1.62% to $65.09
• The Evolution Mining Ltd (ASX: EVN) share price is up 3.37% to $5.21

Analysts at Trading Economics explained that the gold price was rising due to its safe-haven appeal amid renewed geopolitical tensions in the Middle East, as well as China resuming gold purchases.

ASX copper shares are in the green following a 1.56% bump in the copper price to US$4.20 per pound.

• Sandfire Resources Ltd (ASX: SFR) shares are up 3.66% to $10.49
• Red Metal Ltd (ASX: RDM) shares are up 4.55% to 12 cents
• Firefly Metals Ltd (ASX: FFM) shares are up 12.03% to $1.13

What about ASX lithium shares?

ASX lithium shares are also responding to the news from China, given it is the world's top producer of electric vehicles.

• Pilbara Minerals Ltd (ASX: PLS) shares are up 7.67% to $2.32
• IGO Ltd (ASX: IGO) shares are up 4.64% to $5.19
• Liontown Resources Ltd (ASX: LTR) shares are up 3.28% to 63 cents
• Latin Resources Ltd (ASX: LRS) shares are up 10.34% to 16 cents
• Sayona Mining Ltd (ASX: SYA) shares are up 3.45% to 3 cents
• Syrah Resources Ltd (ASX: SYR) shares are up 4.17% to 25 cents
• Vulcan Energy Resources Ltd (ASX: VUL) shares are up 4.88% to $6.45
• Patriot Battery Metals Inc (ASX: PMT) shares are up 6.35% to 34 cents

Overnight, there was a 0.42% lift in the lithium hydroxide price to US$9,489.70 per tonne and a 0.52% decline in the lithium carbonate price to US$10,536.46 per tonne.

The post Why are ASX mining shares going gangbusters today? appeared first on The Motley Fool Australia.

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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