NEW YORK (TheStreet) -- Vale (VALE) - Get Report stock is climbing 10.70% to $3 in afternoon trading on Monday as a China stimulus benefits the Brazil-based metals and mining company. 

China, which is Brazil's top trading partner, announced that it is reducing its required reserve ratio by 0.5% as of March 1, Bloomberg reports. The move will add about $105 billion to the country's financial system.

The support to China's struggling economy is strengthening the outlook for raw-materials exporters such as Vale.

"Today's measure helps to reduce the market's anxiety regarding China's growth prospects," Pablo Spyer, operational director at Mirae Asset Wealth Management, told Bloomberg. "And that's especially good for Brazil."

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Vale's weaknesses include its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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You can view the full analysis from the report here: VALE

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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