SINGAPORE: Iron ore futures jumped on Tuesday, with the Dalian benchmark hitting a two-year high, as China’s latest pledge to step up policy support for its flagging economy lifted sentiment.

The most-traded September iron ore on China’s Dalian Commodity Exchange rallied 1.5% to 857.0 yuan ($119.76) per metric ton, as of 0311 GMT, hitting its highest since July 2021.

On the Singapore Exchange, the benchmark August iron ore was up 1.5% at $112.6 a metric ton after a two-day slide. China’s top leaders pledged on Monday to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand, signalling more stimulus steps. Earlier, China’s state planner had unveiled measures that seek to support private investment and transform underdeveloped areas in mega-cities.

China stocks jumped at the open on Tuesday, with property developers rallying after a sharp sell-off in the previous session, as top policymakers said they would step up support for the embattled sector. Still, the market will require more details on these latest measures before it will feel assured the worst is behind it, analysts at ANZ investment bank said in a note.

Fresh signs of stress are emerging in China’s property sector, reigniting concerns that began with China Evergrande Group’s default in 2021, as flagging sales lead to cash crunches at the biggest developers. Steel benchmarks on the Shanghai Futures Exchange soared. The most-active rebar contract strengthened 1.4%, hot-rolled coil spiked 2.5%, wire rod gained 0.8%, and stainless steel climbed 0.7%. Steelmaking ingredients Dalian coking coal dipped 0.2%, while coke inched up 0.6%.