Iron ore extends gains as China manufacturing activity improves

Iron ore extended gains for a second straight day as China’s manufacturing activity expanded following Beijing’s stimulus measures to support the economy. The Caixin manufacturing purchasing managers’ index (PMI) rose to 51.5 last month, its highest since June. The survey on which the index is based showed new orders rose in November at the fastest pace since February last year. Benchmark iron ore futures were up 0.7% at $104.70 a tonne at 12:11 p.m. Singapore time after jumping 3.4% last week. But iron ore may still be under pressure after falling 25% this year on weak housing activity in China. Latest data showed home sales fell again in November, reversing gains in October.