Chinese stock-index futures jumped and American depositary receipts rallied after the government cut lendersâ€™ reserve-requirement ratios for the first time since 2012 to bolster the flagging economy.
FTSE China A50 Index futures traded in Singapore surged 4.5 percent as of 9:04 a.m. local time. A Bloomberg gauge of the most-traded Chinese ADRs advanced 1.3 percent on Wednesday as financial stocks including China Construction Bank Corp. rallied.
The reserve ratio for lenders will fall 50 basis points on Feb. 5, the Peopleâ€™s Bank of China said on its website Wednesday. The level will decline to 19.5 percent, based on previous statements.
The governmentâ€™s manufacturing Purchasing Managersâ€™ Index declined to 49.8 last month from 50.1 in December, signaling a contraction for the first time in more than two years.