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ASX closes 0.2% higher as iron ore rallies

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2023-09-12

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At the closing bell, the S&P/ASX 200 was closed 0.2 per cent higher at 7206.90 points. 

Iron ore prices rallied after new bank lending in China released on Monday handily beat expectations and eased some concerns about the Asian giant’s economic outlook.

In Singapore, the benchmark October futures contract rose 1.1 per cent to $US118.65 per tonne and hit the highest level since March.

Shares in mining heavyweights extended early gains. Rio Tinto (ASX:RIO) jumped 1.5 per cent, BHP (ASX:BHP) rallied 1.2 per cent, and Fortescue Metals (ASX:FMG) climbed 1.7 per cent.

Chinese banks extended 1.36 trillion yuan in new yuan loans in August, up from 345.9 billion yuan in July, data from People’s Bank of China showed on Monday, higher than the estimated 1.20 trillion yuan in a Reuters poll.

The offshore yuan held near Monday’s high to trade at 7.3053 per dollar.

Futures

The Dow Jones futures are pointing to a fall of 20 points.

The S&P 500 futures are pointing to a fall of 5 points.

The Nasdaq futures are pointing to a fall of 13 points.

The SPI futures are up 17 points.

Best and worst performers

The best-performing sector was Materials, up 0.89 per cent. The worst-performing sector was Energy, down 1.43 per cent.

The best-performing large cap was Pilbara Minerals (ASX:PLS), closing 4.31 per cent higher at $4.6. It was followed by shares in Ramsay Health Care (ASX:RHC) and Orica (ASX:ORI).

The worst-performing large cap was Meridian Energy (ASX:MEZ), closing 2.48 per cent lower at $4.71. It was followed by shares in BlueScope Steel (ASX:BSL) and Woodside Energy Group (ASX:WDS). 

Asian markets

Japan's Nikkei has gained 0.80 per cent.

Hong Kong's Hang Seng has lost 0.06 per cent.

China's Shanghai Composite has gained 1.14 per cent.

Company news

NOVONIX (NASDAQ: NVX, ASX: NVX) announces results of engineering study on proprietary all-dry, zero-waste cathode synthesis process. The study found that NOVONIX’s process may potentially reduce power consumption by an estimated 25% and practically eliminate waste byproduct generation over the conventional process. In response, NOVONIX CEO Dr. Chris Burns, stated, “the cathode active materials market is projected to be greater than $100 billion in 2030 and the opportunity to deploy this new process to the battery industry is significant.”

Icetana (ASX:ICE) receives new $1.5m AI hardware order for 16 Middle East shopping malls. In response, Chief Executive Officer Kevin Brown commented: “While icetana is primarily a software company, we are always focussed on supporting our customers, with hardware or otherwise, in implementing our software, and ultimately on keeping their people and assets safe.”

Ionic Technologies (ASX:IXR) is partnering with Ford Technologies, Less Common Metals and British Geological Survey to anchor uk rare earth supply chain from magnet recycling. In response, Ionic Rare Earth’s Managing Director Tim Harrison commented; “We are harnessing our technology to accelerate mining, refining and recycling of magnet and heavy rare earths critical for energy transition, advanced manufacturing, and defence.”  

Commodities and the dollar

Gold is trading at US$1,943.70 an ounce.

Iron ore is 0.8 per cent lower at US$116.80 a tonne.

Iron ore futures are pointing to a 2.37 per cent rise.

Light crude is trading $0.36 higher at US$87.65 a barrel.

One Australian dollar is buying 64.21 US cents.

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