European shares advanced on Wednesday on signs of an economic recovery in China.
The government is to increase spending in areas such as infrastructure and manufacturing on top of a 4 trillion yuan ($US584.7 billion) stimulus package announced in November.
The FTSEurofirst 300 index of top European shares closed 4.2% higher at 696.23 points, after losses in the three previous sessions.
The resources sector index rose 12.6%: Rio Tinto was up 14% and BHP Billiton was up 12.9%, after the price of copper rose by almost 7% - its highest in more than three months. ArcelorMittal gained 12.4%.
Crude oil prices rose 6%: Total was up 8.9% and Royal Dutch Shell was up 6.3%
In Frankfurt, the DAX index ended at 3,890.94 points, up 200.22 or 5.42%. In Paris, the CAC-40 index closed at 2,675.68 points, up 121.13 or 4.74%. The Swiss market index closed at 4,463.67 points, up 105.67 or 2.42%.
In Britain, the FTSE 100 closed 133.78 points, 3.81%, at 3,645.87, after losing more than 10 % in the previous three sessions.
In Tokyo, the Nikkei gained 61.24 points, 0.85%, in moderate trade to end at 7,290.96.
Shares in Hong Kong rose by 2.47% after Beijing said it would expand its fiscal spending plan. The Hang Seng Index gained 297.27 points to close at 12,331.15.
In Australia, stocks fell after a surprise decline in fourth-quarter gross domestic product. The S&P/ASX 200 index lost 52.8 points, 1.64%, to end at 3,166.4.
The All Ordinaries shed 45.5 points, or 1.43%, to 3125.9.
In New Zealand, the NZX50 index closed up 51 points, or 2.1%, at 2469. Market turnover was $59 million.
Contact Energy rose 2 cents to $5.51, Fletcher Building was up 11c at $5.26 and Telecom gained 12c to $2.38.