China cut the amount of cash that banks must set aside as reserves for the first time since 2008 as Europe's debt crisis dims the outlook for exports and growth.

Reserve ratios will decline by 50 basis points effective Dec. 5, the People's Bank of China said in a statement on its website today. Before the announcement, the level was a record 21.5 percent for the biggest lenders, based on past statements.

The government moved before a report tomorrow that may show manufacturing contracted for the first time since February 2009 and after stocks tumbled today by the most in almost four months. Easing in the nation that contributes most to global growth may boost confidence as Europe's debt crisis worsens and the region's banks face a funding squeeze.