European stocks jump in global rally

Europe's stock markets jumped today in a global rally driven by the brighter economic outlook and impressive gains in Tokyo, dealers said.
Confidence swept through world markets, with Tokyo surging almost eight per cent on hopes of a fresh stimulus and an end to recent China-fuelled losses.
In late morning European deals, London's benchmark FTSE 100 index of top companies rose 1.92 per cent to 6,264.30 points.
Frankfurt's DAX 30 climbed 1.73 per cent to 10,448 points and the Paris CAC 40 advanced 2.51 per cent to 4,713.70 compared with yesterday's close.
"European markets are taking their lead from a buoyant Asian session, with stocks soaring higher and appearing to have put recent concerns behind them," said Rebecca O'Keeffe, head of investment at online stockbroker Interactive Investor.

"After weeks of subdued performance in Asia, with fears of lower Chinese growth fuelling negative sentiment, speculation that Chinese policymakers will do more and a seeming shift in investor confidence has seen the strongest rally in Asian stocks since October 2008."

Japanese stocks spearheaded an Asian equities rally as investors scooped up shares on the cheap, with buying also boosted by a weak yen and hopes that China's wild market volatility was ending.
Tokyo's Nikkei-225 index leapt 7.71 per cent or 1,343.43 points to 18,770.51 by the close.
That was the biggest one-day jump since late 2008 during the global financial crisis and Lehman Brothers bankruptcy when markets faced heavy volatility.

The recovery came after the Nikkei tumbled 2.43 per cent a day earlier, wiping out all of its gains since the start of the year, as weak China trade data aggravated worries about the world's number two economy.
The Nikkei had been up almost 20 per cent on the year in late June, before tumbling as China devalued its yuan currency last month, setting off a wave of global volatility.
Big gains on stock markets come after weeks of stocks being hammered by concerns about slowing growth in China, whose economy is worth more than 13 percent of global GDP.

Suggestions that Beijing had stepped in to shore up mainland shares yesterday sent Shanghai and Hong Kong stocks flying higher today.