The BHP Group Ltd (ASX: BHP) share price is setting the pace today, up 2.6% in late morning trade.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $38.42 and are currently swapping hands for $39.42 apiece.
The ASX 200 is in the green as well, though up a more modest 0.3%.
So why is the BHP share price outperforming?
What's the latest out of China?
The BHP share price on the ASX is following in the footsteps of the miner's US-listed stock. BHP shares closed up 3.7% on the NYSE yesterday (overnight Aussie time).
BHP looks to be getting a boost from rumours circulating on Chinese social media.
Those unconfirmed rumours indicate that the Chinese government may be ready to ditch its COVID-zero policies and reopen the world's number two economy by March. China's continuing lockdowns have hampered its growth and diminished its voracious demand for industrial metals.
Atop sending many Chinse stocks higher, the rumours also fuelled some gains in iron ore and copper.
Iron ore is up 0.8% overnight to US$80.15 per tonne, while copper gained 2.7% to US$7,652 per tonne.
That's good news for the BHP share price, as iron ore is the miner's biggest revenue earner with copper coming in at number two.
As for what's happening with China's COVID policies, Charlie Wilson, a portfolio manager at Thornburg Investment Management, said (courtesy of Bloomberg), "I'm not surprised to hear rumours about a more formal approach. It's impossible to run an economy of that size with periodically locking down. It's not sustainable."
Commenting on the rally in stocks and commodity prices, Sharif Farha, head of investments at HB Investments added, "Whether the rally sustains or not will be dependent on if China's Covid Zero policy is officially over."
BHP share price snapshot
Though it's taken a big tumble since April amid a sharp retrace in iron ore and copper prices, the BHP share price remains up 10% over the past 12 months. That compares to a 4% full-year loss posted by the ASX 200.
