Copper helped lead a rally of industrial metals as prospects for stimulus in Japan and better-than-estimated U.S. jobs data boosted the outlook for commodities demand. Mining stocks in the Americas rose to the highest in a year.
An election win by Japanese Prime Minister Shinzo Abe’s ruling coalition on Sunday raised speculation the government will spur growth through new spending. Better-than-expected U.S. payrolls figures on Friday also eased concerns about the U.S. economy.
“You have the potential for additional stimulus there in Japan, and the payrolls report was good, which sends a better signal that things aren’t falling apart,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “It’s adding to a bit of a risk-on bid, and that’s impacting base metals.”
Copper for delivery in three months climbed 0.9 percent to $4,751 a metric ton ($2.16 a pound) at 4:09 p.m. on the London Metal Exchange, heading for the first consecutive sessions of gains in a week.
The Bloomberg Americas Mining Index rose 1 percent to the highest level since May 2015. Gains were led by miners including First Quantum Minerals Ltd., Freeport-McMoRan Inc. and Teck Resources Ltd., which all climbed more than 3.5 percent.
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