Industrial metals prices extended their gains on Tuesday with expectations of a worldwide manufacturing rebound, while Asian shares crept up a little more cautiously ahead of this week’s U.S. inflation data and a crucial European Central Bank meeting.
MSCI’s broadest index of Asia-Pacific shares outside Japan 0.2%. Japan’s Nikkei rose 0.6%.
Shanghai copper futures were up 1% at a two-year high and have gained more than 10% in a month. Zinc made a five-month high in Shanghai, where Aluminium made a 22-month peak on Monday.
Even iron ore , battered by China’s property downturn, steadied above $100 a tonne in Singapore.
“It’s pretty much a China bet,” said Vishnu Varathan, head of economics at Mizuho Bank in Singapore.
“It’s coincided with a global manufacturing bottoming, and I think that plays well into China’s industrial recovery. That aspect of it is a broader-based story for metals.”
On Monday, data showed German industrial production rising more than expected in February.
Last week, data showed U.S. manufacturing growing for the first time in one-and-a-half years. China’s manufacturing activity expanded for the first time in six months in March.
Precious metals have been soaring, too, with gold hovering just below a record high of $2,353 hit on Monday. Spot gold has risen nearly 14% this year.
Chinese stocks have not joined the party, though Hong Kong’s Hang Seng was 1.2% higher in early trade and China proxies such as the Antipodean currencies have been rallying.
The Australian dollar is up almost 2% in a week and traded at $0.6605 on Tuesday. The New Zealand dollar has regained a footing above $0.60 and hit a two-week high of $0.6047 in morning trade.
China’s yuan , down about 1.8% this year, has found a floor around 7.3 to the dollar.
Source: Reuters
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