It was another huge day for commodities-themed stocks around Asia.
Rio Tinto and BHP Billiton both rose 8.2% in Australia trade Thursday. In Hong Kong, Jiangxi Copper gained 13.6%, aluminum maker United Co Rusal jumped 15.9% and commodities trader Glencore rose 12.3%. Even the beleaguered Noble Group, the Singapore-listed commodities trader, was up 8.2%.
Analysts offered many explanations for the gains and pointed to surging commodities prices in China. Spot prices for thermal coal, which is a key component in the production of copper, steel and aluminum, have doubled in the year to date, raising prices for metals.
However, the only new news to explain the commodities surge Thursday was Donald Trump’s election as U.S. president, giving rise to expectations of vast materials-consuming infrastructure building. “President Trump said he is going to rebuild the U.S….it’s going to take a lot of commodities,” said Macquarie analyst Ben Crowley.