LONDON: Global stock markets raced higher Tuesday as China's economic growth hit a 25-year low and sparked speculation of more government stimulus that would buoy the world's second biggest economy.
China's gross domestic product (GDP) expanded 6.9 percent in 2015, official data showed, which was the slowest growth since 1990 but met analysts' expectations.
Asian equities surged in reaction, with Shanghai leading the pack, as dealers bet that Beijing would seek to kickstart growth.
European markets were also spurred higher, with Frankfurt, London and Paris adding more than two percent, and mining companies soaring on hopes of resurgent Chinese demand.
World oil prices also rebounded close to $30 per barrel but remained dogged by abundant crude supplies.
Swirling speculation over fresh stimulus provided some rare support at the start of a turbulent year that has seen markets hammered by worries over China's slowdown, 12-year oil price lows and the faltering global economy.
China's 2015 economic growth rate was well below the 7.3 percent of 2014, but was broadly in line with Beijing's target of about seven percent.
It was also higher than an AFP survey of analysts that projected it would fall to 6.7 percent this year.
London's mining sector enjoyed sizeable gains, reversing recent China-inspired losses, as dealers bet on a recovery in demand from the leading commodity consuming nation.
Shares in both Anglo American and Glencore rocketed by almost 12 percent, while BHP Billiton added 5.9 percent and Rio Tinto won 5.1 percent.
In the eurozone, France's global steel titan Arcelor Mittal leapt 8.3 percent in Paris, while Germany's industrial giant Thyssenkrupp gained 3.7 percent in value.
"The mining rally is a relief rally with the stocks putting on gains after such heavy falls recently," GKFX analyst James Hughes told AFP.
"Added to that, you have the fact that the potential of more stimulus in the China could raise the overall economy including import and export and overall output numbers that have slumped so heavily."
British investors also digested official data showing that 12-month consumer price index inflation rose to 0.2 percent in December, from 0.1 percent in November.
Meanwhile on Tuesday, the International Monetary Fund cut its 2016 global growth forecast to 3.4 percent, down from the previous estimate of 3.6 percent. That still marked modest expansion from 3.1 percent in 2015.
The IMF warned that the outlook was clouded by substantial risks including a stronger US dollar, collapsing oil prices -- and slower Chinese growth.
Over the past six months, China's sharp slowdown has sent shockwaves through stock markets from Asia to the Americas, in a rout that has wiped trillions off valuations and fuelled fears of another global economic crisis.
Shanghai's stock market, which has plunged almost 20 percent since the start of this year, rallied 3.2 percent on Tuesday in characteristically volatile trade.
Others said the government-backed so-called "national team" investment group was buying shares to prevent a market sell-off, with one eye on the upcoming Chinese New Year break.
"The sharp rise today is, without a doubt, supported by the 'national team' as this is a good window for them to swoop in," Phillip Securities analyst Chen Xingyu told AFP. "Only they have the resources to lift the market this fast."
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