European stocks are set to open higher after Asian peers rallied on a slew of stimulus measures announced by China’s central bank to shore up economic growth and stem a selloff in the equity market.
Contracts for the Euro Stoxx 50 climbed 0.5% as MSCI’s Asia Pacific gauge headed for a fourth-straight daily gain.
Key benchmarks in Hong Kong gained at least 4%, while onshore Chinese indexes rose more than 3% as authorities said they are studying setting up a stock stabilization fund.
Most Asian currencies strengthened against the dollar and gold hit a new record. Risk sentiment got a boost as China said it plans at least 800 billion yuan ($114 billion) of liquidity support for stocks and will allow brokerages to tap the central bank’s funding to buy equities.
The measures came as part of a broad package of policy measures to revive the economy, including a cut to a key short-term interest rate and lower borrowing costs on as much as $5.3 trillion in mortgages.
