Nonferrous metals stocks opened broadly higher in Hong Kong. As of press time, Zijin Mining (02899) rose 3.51% to HK$34.24, China Hongqiao (01378) gained 3.32% to HK$32.4, Lingbao Gold (03330) climbed 3.23% to HK$18.56, CMOC Group (03993) advanced 2.8% to HK$18.36, and Jiangxi Copper (00358) increased 2.57% to HK$34.28.
The rally followed weaker-than-expected U.S. employment data that strengthened expectations for Federal Reserve rate cuts. According to the Labor Department's Thursday report, initial jobless claims surged by 44,000 to 236,000 in the week ending December 6 - the largest increase since March 2020, while the previous week's reading had shown the lowest level in over three years.
Market consensus continues to anticipate further rate cuts in early 2025, with JPMorgan, Morgan Stanley, and Citigroup uniformly predicting another cut in January. Guojin Securities noted that 2025 will see major global economies enter a phase of substantive policy adjustments amid ongoing geopolitical tensions, including the Russia-Ukraine and Middle East conflicts, which are elevating global supply chain disruption risks as "security" priorities outweigh "cost" considerations. While the U.S. and Europe have begun rate-cutting cycles primarily to counter economic slowdowns rather than stimulate growth, this environment could potentially usher in a supercycle for nonferrous metals.
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