Morgan Stanley's shopping list for commodity stocks to get a boost from China stimulus

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These commodity stocks could win big in a deal to boost China's struggling economy, according to Morgan Stanley.

These commodity stocks could win big as China moves to boost its struggling real estate sector and economy, according to Morgan Stanley. The picks from the investment firm come after China's central bank laid out plans to support a lagging housing market and said it would slash the amount of cash needed on reserve for banks as the second-largest economy contends with weak demand and a growth slowdown.

The sector could also get another boost with more policy action later this year. "Amid elevated macro uncertainty, we favor M & M equities with near-term catalysts and/or those leveraged to copper given the metal's persisting supply challenges," he said. Here are some of the names that could benefit from China's stimulus: Within the mining sector, Morgan Stanley names Freeport-McMoRan and Alcoa among its top picks, with shares up about 22% and 17%, respectively, this year.

 

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China stocks can rally 10% in the near term, Morgan Stanley strategist saysThe CSI 300, which tracks major stocks on the Shanghai and Shenzhen exchanges, on Friday closed at 3,703.68 points, up 15.7% for the week.
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