Mining stocks in Asia gain as hard-asset trade gathers pace

The advances mirror a powerful rally in metals markets, where gold, silver, copper and aluminum are climbing on what traders describe as a debasement trade.

Asian mining stocks climbed with metals prices as investors rotated into hard assets, driven by a weakening dollar and growing unease over currencies, geopolitics and global fiscal risks.

A group of materials producers led gains Monday on MSCI Inc.’s broadest index of Asia Pacific equities. Korea Zinc Co. shares climbed as much as 14% in Seoul while Zhongjin Gold Corp.’s jumped 10% in Shanghai. Markets were closed for holidays Monday in Australia and India.

The advances mirror a powerful rally in metals markets, where gold, silver, copper and aluminum are climbing on what traders describe as a debasement trade. Investors are pulling away from currencies and Treasuries, seeking refuge in hard assets as concerns mount over fiscal largesse, geopolitics and the durability of US exceptionalism.

The rally in metals “is a long term trend that we have been observing for several years,” said Frank Benzimra, head of Asia equity strategy at Societe Generale SA. Reasons include a diversification away from US assets and rising defense spending boosting demand for base metals as well as AI-related demand.