It's been a wonderful day for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares so far this Wednesday. At the time of writing, the ASX 200 has jumped up by a healthy 0.75%, putting the index at around 8,440 points. But let's talk about what's going on with ASX coal shares today.
ASX coal shares are, on the whole, doing even better than the broader market.
Take leading coal stock Whitehaven Coal Ltd (ASX: WHC). Whitehaven shares are currently enjoying a hearty 3.85% rise up to $6.32 a share after closing at just $6.10 yesterday.
New Hope Corporation Ltd (ASX: NHC) isn't running quite as hot, with its shares presently up 0.72% at $4.90 each. Saying that, New Hope did get as high as $4.98 this morning (a gain worth 2.47% at the time).
Stanmore Resources Ltd (ASX: SMR) is faring better. At the time of writing, it is up 3.33% to $2.79 a share.
Yancoal Australia Ltd (ASX: YAL) is going the other way though. Yancoal initially shot up this morning, recording a gain worth 1.68% at one point. But investors have subsequently cooled off on this ASX coal share, and have sent it into red territory this afternoon. At present, Yancoal is nursing a 0.46% loss at $6.52 a share.
So why are these ASX coal shares (with the exception of Yancoal) having such a strong session this Wednesday?
Why are ASX coal shares shooting higher today?
Well, it's hard to know for sure. However, a big development out from the United States yesterday might be responsible.
As any investor who was watching the markets yesterday would know, ASX shares tanked on some major news out of China. The world's second-largest economy announced a series of tariff retaliations to the fresh new 10% import tariff levied by the United States this week.
Unlike President Donald Trump's universal 10% tariff on Chinese imports, the Chinese countermeasures are far more targeted. As reported by The Guardian this week, "the Chinese tariffs focus on a range of sectors – big tech, energy, cars, farming, and fashion – but with some specific targets".
Those targets include a 10% levy on American oil entering China and a 15% tariff on liquified natural gas (LNG) and coal.
It's that last part that might just be driving ASX coal shares higher today.
Australia is already a big exporter of coal to China. However, if American coal just became 15% more expensive for Chinese buyers, it might prove to be a windfall for Australian coal exporters.
This might just be what the market is thinking today as it reprices these ASX coal shares higher.
Of course, Trump has proven to be rather indecisive about his tariff policies, as the ups and downs over the now-delayed 25% tariffs on Mexico and Canada proved earlier this week.
So, let's see if today's gains in the ASX coal share sector hold over the rest of the week.
