Futures bounce back with eyes on China, Morgan Stanley

NEW YORK (Reuters) - U.S. stock index futures rose on Monday, following a sharp decline in the previous session, as Chinese steps to stimulate its slowing economy and earnings including those from Morgan Stanley lured money back into equities.

* In the second industry-wide cut in two months, China's central bank on Sunday cut the amount of cash that banks must hold as reserves in a move to help spur bank lending and combat slowing growth.

* Morgan Stanley shares rose 2.6 percent in premarket trading after the Wall Street investment bank reported a 60 percent rise in quarterly profit and raised its dividend by 50 percent to 15 cents per share.

* Hasbro jumped 8.5 percent after the toymaker reported a surprise increase in quarterly revenue, helped by strong growth in toys based on characters in Transformers movies and Marvel Comics.

* IBM is due to report results after the closing bell.

* Despite lackluster U.S. economic data, a world grappling with slow growth and concern that Greece and Ukraine could default on their debt, the U.S. stock market has been more than resilient. Even after Friday's selloff, major indices are less than two percent from all-time highs and volatility measurements have been close to their lowest levels for 2015.

Futures snapshot at 7:35:

* S&P 500 e-minis were up 8 points, or 0.39 percent, with 153,943 contracts changing hands.

* Nasdaq 100 e-minis were up 11.25 points, or 0.26 percent, in volume of 24,878 contracts.

* Dow e-minis <1YMc1> were up 77 points, or 0.43 percent, with 24,862 contracts changing hands.

(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama)

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