The mainland Chinese stock market had its best day in seven weeks, rising 7.3 per cent. The news also boosted markets across the rest of Asia, Europe and Latin America.
The Chinese government said at the weekend it would spend Rmb4,000bn ($586bn) over the next two years on infrastructure and social programmes, although it did not say how much was extra spending that was not already planned.
Base metal prices surged, with copper rising 10 per cent yesterday, nickel 13 per cent and zinc 7 per cent. The news also contributed to the 5 per cent rise in oil prices.
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