Australia shares storm to fresh 7-year high as China rate cut spurs resources

Australian shares rose to a fresh seven-year high on Monday as a Chinese rate cut pushed up resources stocks while growing expectations of a domestic rate cut prompted investors to buy banks. On Saturday, China's central bank cut rates just as official data showed a second straight month of shrinking manufacturing activity. The move is expected to kickstart spending across the board, driving demand for key steel-making ingredient iron-ore.