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The mining sub-index has rallied 6% over the past two sessions, jumping more than 3% on Wednesday to end at its highest level since mid-July.

Global mining giants BHP Group and Rio Tinto advanced 3.8% each, while Fortescue soared over 4.7% to an eight-week high.

Fifteen out of the top 20 performers in the ASX 200 benchmark index were miners on Wednesday.

That rally has come relative to the banking index, which has lost 4% this week. It ended 1.7% lower on Wednesday at its lowest level since late August.

Analysts at Morgan Stanley last week wrote improvement in commodity signals and firmer signs of soft landing globally could be the potential triggers for rotation out of banks.

“News of China stimulus saw significant rotation out of banks and into resources,” they wrote in a client note on Wednesday.

“Commodity signal and ultimate execution of (China’s) policy agenda will be key to durability of any further repositioning away from (Australian) banks in our view.”

To be sure, the banking sector is still the best performer in Australia this year with more than 22% growth, including the day’s moves, underpinned by strong flows from pension funds although valuations remain stretched.

The mining index, on the other hand, has declined more than 13% this year, making it the worst performing sector in Australia, as commodity prices remained under pressure owing to sluggish demand from a struggling Chinese economy.