These commodity stocks could win big as China moves to boost its struggling real estate sector and economy, according to Morgan Stanley.
Morgan Stanley's team believe these measures display a heightened "sense of urgency" and signal that China is "taking deflation seriously."
Against this backdrop, the firm sees a positive setup for metals and mining stocks that have underperformed the S & P 500 by 25 percentage points since May.
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.
Analysts view U.S. Steel as one of the biggest beneficiaries from a China stimulus along with shares of Nucor .
Persons:
Morgan Stanley, Morgan Stanley's, Stephen Cheung, Carlos De Alba, Biden
Organizations:
Alcoa, Vale SA, Steel, . Steel, Japan's Nippon Steel, NBC
Locations:
China, Freeport, McMoRan, Indonesia, Nucor .