Stocks of major miners take a hammering as concern grows over the health of top market China
SYDNEY—Shares in major mining companies took a hammering Monday as concern grew over the health of China, the biggest buyer of commodities from copper to iron ore.
The rout began in Australia after disappointing results from two big mining companies there. South32 Ltd., which mines commodities from coal to manganese, fell 7.6%, taking its overall slide since it was spun out of BHP Billiton PLC in May to 34%. Fortescue Metals Group Ltd., the world’s fourth-largest producer of iron ore, tumbled 15%, after reporting an 88% dive in annual earnings. A broader measure of mining stocks listed in Sydney was down 5% on Monday, to its lowest level in more than a decade.
Investors’ bearishness spread to London, with shares in major miners BHP, Anglo American PLC and Glencore PLC all down more than 5% in early trading.
The sector is being hit hard by fears of a deepening slowdown in China, which this month has offered lackluster economic numbers and an unexpected currency devaluation. China’s main stock market closed 8.5% lower Monday.