TOCKWATCH - Australian resource stocks open weaker after China rate hike

SYDNEY (AFX) - Major resources stocks opened weaker amid some concern about the outlook for metals demand out of China after the People's Bank of China lifted interest rates for the first time in nine years, which sparked a commodity sell-off overnight, dealers said.
But they expect the rate hike, which could be the first among a series, will help to ensure a "soft landing" for the booming Chinese economy, helping stem rampant and unsustainable growth rates.
At 10.26 am, BHP Billiton was down 0.57 aud or 4 pct at 13.77, Rio Tinto down 0.96 at 36.64 and takeover target WMC Resources 0.19 lower at 6.78.
Elsewhere, zinc and lead producer Zinifex was down 0.11 at 2.08, Alumina down 0.02 at 5.43 and Macarthur Coal 0.12 lower at 3.80.
The benchmark S&P/ASX 200 index was down 10.4 points at 3,765.7.
Goldman Sachs strategist Malcolm Southwood said that China's rate hike is a short-term negative for sentiment towards the resources sector.
"It again raises doubts as to what the real outcome for demand growth for raw materials in the short term is going to be," Southwood said in a research report.
But he added the rise in Chinese interest rates is a positive and necessary development for the Chinese economy, and has been expected for some time.
"We certainly agree that in the longer term, this move is likely to ensure the 'soft landing' outcome and that more sustainable rates of growth are achieved," he said.

(1 usd 1.34 aud)

Morning all.

Erm!

It's Friday, jj. ;-)

Mid morning all.

Another one who doesnt know what day it is!!!!!

LOL!

Fundamentalist-don't tempt fate!!!