Asian stock markets lead rally on China stimulus [Video]

Stock markets and oil prices rallied Tuesday after China’s central bank unveiled fresh stimulus measures to kickstart growth in the world’s number two economy.

After a string of weak data that has fanned worries about the financial health of the country, China’s central bank said it would cut a slew of rates to boost growth.

Shanghai and Hong Kong stock markets closed up more than four percent, as China unveiled some of its boldest measures in years as it faces a prolonged property-sector debt crisis, continued deflationary pressure and high youth unemployment.

The Paris stock market led the way in Europe with a gain of 1.6 percent in early afternoon deals, with the luxury fashion sector boosted by hopes of rebounding demand in China.

Frankfurt was up 0.7 percent, brushing off news that German business confidence deteriorated for a fourth straight month in September, according to a closely-watched survey.

London …