Australian shares opened higher with a significant boost from iron ore miners BHP, Rio Tinto, and Fortescue, all of which saw gains exceeding 1 percent, driving up the overall market index. This surge in their stocks was driven by iron ore prices rising above $US135, following the announcement by the governor of China’s central bank predicting a reduction in the reserve requirement ratio for banks within the next two weeks.
The S&P/ASX 200 is 0.17 per cent higher at 7,532.10.
The SPI futures are pointing to a rise of 9 points.
Best and worst performers
The best-performing sector is Materials, up 1.13 per cent. The worst-performing sector is Information Technology, down 0.54 per cent.
The best-performing large cap is Mineral Resources (ASX:MIN), trading 6.29 per cent higher at $58.96. It is followed by shares in ResMed (ASX:RMD) and Incitec Pivot (ASX:IPL).
The worst-performing large cap is Domino’s Pizza Enterprises (ASX:DMP), trading 29.32 per cent lower at $40.50. It is followed by shares in IDP Education (ASX:IEL) and Newmont Corporation (ASX:NEM).
Commodities and the dollar
Gold is trading at US$2035.00 an ounce.
Iron ore is 2.9 per cent higher at US$136.15 a tonne.
Iron ore futures are pointing to a 2.26 per cent rise.
One Australian dollar is buying 65.74 US cents.