On an ordinary day, aggressive repricing in the rates market of this magnitude would usually be enough to send the interest Rate sensitive ASX200 scurrying for cover. However, a move by China’s central bank today to cut another key interest rate saved the ASX200 from an almost certain mauling.

While the move in China today to cut its one-year lending rate by 10bp was expected after another key short-term rate was cut on Tuesday, it confirms a policy reversal is underway. Chinese authorities are expected to provide more Stimulus to prevent a double-dip slowdown of the Chinese economy as growth and activity data continues to falter.

The prospect of more stimulus in China, was music to the ears of the big iron ore miners. Fortescue added 3% to $22.35, Rio Tinto added 0.84% to $117.13, and BHP added 0.33% to $46.05. Coal miners also gained, led by Coronado Global, which added 3.8% to $1.44, New Hope Coal added 3.3% to $5.49, and Whitehaven Coal added 1.84% to $6.38.

Taking its lead from overnight gains in the Nasdaq, the ASX200 IT sector has gained, led by Xero, which added 2.2% to $113.77, Wisetech Global added 1.46% to $79.44 and Nextdc added 1.39% to $12.80. In contrast, Appen fell 6.9% to $2.63 as 16 million new shares hit the market after its capital raise last month.