Mining shares rally despite Chinese data

MINING shares “softened the blow” on the Australian market following concerns of an interest rate hike and weak Chinese data.

Local shares burst out of the gates following a strong lead from Wall Street, but inflation data from New Zealand stoked fears central banks across the globe will be forced to lift rates.

The ASX200 rose 0.3 per cent to 7381 points, buoyed by a broad gain for mining shares.

Nickel Mines was the strongest performing stock on the market, up more than 5 per cent to $1.03, while Lynas Rare Earths, Oz Minerals, IGO and South32 all gained between 3.9 and 4.75 per cent, as the sector was boosted by a supply crunch.

“It’s softened the blow of that nervousness in the market because we’re obviously so heavily skewed towards miners and major energy stocks,” said IG markets analyst Kyle Rodda.

He said Chinese data showing that “growth is weakening much faster than previously expected”, added to market concerns. China’s economy grew 4.9 per cent in the third quarter from a year earlier.