Australian dollar, miners jump on China rate cut
LONDON Nov 21 (Reuters) - The Australian dollar surged to the day's high on Friday and London-listed shares in mining companies jumped by 3-4 percent after China's central bank cut interest rates to lift a slowing economy.
By 1052 GMT, the Aussie had gained 0.8 percent on the day to $0.8690, having risen as high as $0.8723. The New Zealand dollar, also heavily dependent on trade with China, was up 0.6 percent.
Shares in Rio Tinto surged 3.9 percent and BHP Billiton rose 2.9 percent. The pan-European STOXX basic resources sector index rose 3.4 percent.
"The Chinese government have obviously decided to act on the front foot and prevent the manufacturing sector dropping into contraction," said Jasper Lawler, analyst at CMC Markets in London.
"The overriding prospect of more global stimulus will boost risk-taking, push yields down and should feed through into higher demand for equities." (Reporting by Patrick Graham, Blaise Robinson and Anirban Nag, editing by Nigel Stephenson)
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