By Oliver Gray
Investing.com - The S&P/ASX 200 was up 79.30 points or 1.07% to 7,523.90 in Tuesday's deals, beginning the first session of the new year on the front foot as investors looked past surging coronavirus infection rates locally and abroad while major miners and financial companies provided broad-based support to the market.
ASX 200 Futures were pointing 1.28% higher.
Among stocks, mining companies gained amid stronger iron ore prices. Rio Tinto Ltd (ASX:RIO) added 0.31%, BHP Billiton Ltd (ASX:BHP) lifted 1.78%, Fortescue Metals Group Ltd (ASX:FMG) gained 2.24%, Champion Iron Ltd (ASX:CIA) gained 1.47%. Rare earth miners also surged with Pilbara Minerals Ltd (ASX:PLS) up 9.06%, Lake Resources NL (ASX:LKE) rallying 8.91%, Magnis Resources Ltd (ASX:MNS) up 2.61%, Lynas Rare Earths Ltd (ASX:LYC) up 8.46% and Avz Minerals Ltd (ASX:AVZ) lifting 9.94%.
Coal prices also surged after Indonesia banned coal exports due to concerns it couldn’t meet its own power demands. New Hope Corporation Ltd (ASX:NHC) lifted 4.48%, Whitehaven Coal Ltd (ASX:WHC) gained 7.28%, Stanmore Coal (ASX:SMR) surged 8.21%.
Gold miners fell however as spot prices eased. Newcrest Mining Ltd (ASX:NCM) was down 0.08%, Northern Star Resources Ltd (ASX:NST) fell 1.22%, Chalice Gold Mines Ltd (ASX:CHN) dipped 2.6%, St Barbara Ltd (ASX:SBM) fell 3.07%, Gold Road Resources Ltd (ASX:GOR) lost 0.96% and Evolution Mining Ltd (ASX:EVN) lost 0.25%.
Meantime, financials companies gained amid rising long term bond yields. Macquarie Group Ltd (ASX:MQG) added 1.05%, Australia and New Zealand Banking Group Ltd (ASX:ANZ) lifted 0.55%, Commonwealth Bank Of Australia (ASX:CBA) gained 0.39%, National Australia Bank Ltd (ASX:NAB) was up 0.73% and Westpac Banking Corp (ASX:WBC) lifted 0.61%
On the bond markets, Australia 10-Year yields were near monthly highs of 1.739% while United States 10-Year rates lifted to near 2-month highs of 1.653%.
On the data front, The IHS Markit Manufacturing PMI was revised higher to 57.7 in November from a preliminary of 57.4, decreasing to a three-month low but remaining in expansionary territory for the 19th consecutive month.