The Australian dollar climbed with futures on copper and U.S. stocks after China stepped up stimulus, cutting the reserve-requirement ratio for banks amid a slowing economy. Chinese index futures slumped at the end of last week after the country tightened rules around margin trading.
The Aussie added 0.4 percent to 78.10 U.S. cents by 9:53 a.m. in Sydney, with China the nation’s biggest trading partner. Copper futures jumped 1.7 percent, while Standard & Poor’s 500 Index futures gained 0.3 percent. FTSE China A50 Index futures were down 6 percent in Singapore by the end of Friday trading, and contracts on Hong Kong-listed shares also slipped. U.S. oil advanced for the seventh time in eight days Monday.
China’s leaders announced on Sunday the biggest cut to the amount lenders must set aside as reserves since the global financial crisis, after data last week showed growth in Asia’s largest economy had slowed to the least in six years. The move came after regulators moved to stem a surge in Chinese equities, banning a source of financing for margin trades and making it easier for short sellers to bet on declines. U.S. inflation data also fueled global stock losses on Friday.