Why Champion Iron, Fortescue, Lake Resources, & Zip are racing higher

These ASX shares are on form on Wednesday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. At the time of writing, the benchmark index is up 0.6% to 7,316 points.

Four ASX shares that are climbing more than most today are listed below. Here's why they are racing higher:

A smiling man points upwards with both fingers in an exaggerated sideways pose.

Image source: Getty Images

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is up 7% to $5.00. This morning the team at Citi upgraded the iron ore producer's shares to a buy rating with a $6.40 price target. The broker made the move on valuation grounds following a pullback in its share price recently. Promising news out of China has also boosted its shares.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is up 5% to $15.50. Investors have been buying this iron ore producer's shares following positive news out of China. According to Reuters, embattled property giant Evergrande has staved off defaulting for the time being. This afternoon it announced that it would be making a bond repayment tomorrow.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price has jumped 23% to 62.5 cents. This morning the lithium developer announced a partnership with Lilac Solutions. The partnership is for technology and funding to develop Lake's Kachi Lithium Brine Project in Argentina. Under the terms of the agreement, Lilac Solutions will contribute technology, engineering teams, and an on-site demonstration plant. It can also earn a maximum 25% equity stake in the Kachi project based on performance-based milestones.

Zip Co Ltd (ASX: Z1P)

The Zip share price is up 4% to $6.50. The catalyst for this was the announcement of a major investment. According to the release, Zip has agreed to make a strategic US$50 million investment in India-based BNPL operator ZestMoney. The Indian BNPL provider has 11 million registered users, over 10,000 online merchants on the platform, and a point of presence in over 75,000 physical stores.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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