Australian mining stocks rallied in anticipation of increased Chinese stimulus, although investors remained wary of lower trading volumes as the benchmark neared a decade high.
The S & P /ASX 200 Index climbed 0.4 percent, or 22.5 points, to 6221.8 at 00:33 GMT. The benchmark fell 0.3 percent on Tuesday. Trading volumes were in line with a fifth of the 30-day average.
“We do not see a strong desire to trade this morning, and this reflects the fact that the market has dropped dramatically over the past couple of months,” commented Michael McCarthy, Chief Markets Strategist at CMC Markets.
The Australian metals and mining index rose about 0.7 percent after China announced an increase in domestic spending, which is seen as positive for Australian resource exporters.
The outlook for increased demand is also reflected in higher commodity prices. Australian miners Rio Tinto and BHP Group gained about 0.6 percent each. Both firms export large volumes of iron ore and copper to China.
New Zealand stocks rose slightly amid little trading. The benchmark S & P /NZX 50 index rose 0.2 percent or 15.71 points to 9409.66. The New Zealand benchmark hit an all-time high at the start of the session.
