Surprise reserve ratio cut from PBoC prompts stocks to jump

Stocks in China surged after authorities cut the reserve-requirement ratios for lenders for the first time since May of 2012, Bloomberg reported, citing a statement from the People’s Bank of China. The reserve ratio for lenders fell 50 basis points Thursday, according to the statement, with the actual level declining to 19% based on previous statements. The central bank joins more than a dozen global counterparts in easy monetary policy this year as tumbling commodity prices provide scope to support growth.