Skip to Content
Global News Select

Vale Shares Rise 2.7% After China Promises Support for Economy

By Jeffrey T. Lewis

 

SÃO PAULO--Vale shares rose 2.7% after China's central bank said it will take measures to boost economic growth.

The Brazilian iron-ore miner's shares reached 62.68 reais, the equivalent of $12.62, and were down 31% from the end of last year through Wednesday's close. Brazil's Ibovespa stocks index was up 0.8% in morning trading.

The People's Bank of China said Thursday it will increase financial support for shantytown renovation projects and for affordable housing, and that it will extend loan support for unfinished homes to the end of May next year.

An increase in construction activity will also boost demand for steel, and for the alloy's main ingredient, iron ore. Vale is one of the world's biggest producers of iron ore, and China is its biggest market.

 

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

 

(END) Dow Jones Newswires

August 17, 2023 10:09 ET (14:09 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

Market Updates

Sponsor Center