The Australian share market has opened higher after a surprise cut to interest rates in China boosted mining stocks.

The People’s Bank of China has unexpectedly cut benchmark interest rates for the first time in more than two years to boost sagging economic growth.

Also, European Central Bank president Mario Draghi signalled on Friday that new stimulus measures were being prepared to boost the flagging eurozone economy.

CMC Markets chief market analyst Ric Spooner said investors were piling into mining stocks on the expectation that the rate cuts in China would result in Australia’s biggest trading partner buying more iron ore.

“China’s rate cut and Mr Draghi’s statements explains the move upwards – it’s particularly strong in the mining stocks,” Spooner said.

In the resources sector at 1027 AEDT, global miner BHP Billiton was $1.30 higher at $33.00, Rio Tinto jumped $2.00 to $58.41, and Fortescue Metals surged 28 cents, or 10.41 per cent, to $2.97.

Atlas Iron was up one cent at 21 cents, and BC Iron advanced five cents to 61 cents.

Among the major banks, the Commonwealth Bank was up 24 cents at $80.33, ANZ scraped off one cent at $31.81, Westpac picked up 21 cents to $32.46 and National Australia Bank gained 24 cents to $32.51.

On Wall Street on Friday, the Dow Jones Industrial Average jumped 91.06 points, or 0.51 per cent, to 17,810.06 points.