World shares have surged following reports that China plans to spend billions of dollars to help rebuild the capital of state-run banks and provide other fiscal support for the economy.

Indexes rallied Thursday amid a surprise fall in jobless claims and promises from China to further invigorate the country's sluggish economy.

European equities clung to the coattails of surging Asian stocks on Thursday, driven by news of aggressive Chinese economic stimulus and a fall in oil prices on a report Saudi Arabia is preparing to dump its unofficial crude price target of $100 a barrel.

Shares in Asia pushed higher on Wednesday, again led by gains in China, after U.S. stocks climbed to more records in a quiet day of trading.

Treasury yields ticked higher in the bond market after sinking the prior day on a surprisingly weak update on confidence among U.S. consumers. The worst drop in three years raised worries about the U.

By Rae Wee SINGAPORE (Reuters) -Asian stocks bucked the global trend to extend a China-led rally on Thursday, fuelled by persistent optimism over the country's aggressive stimulus package and news that more support could be in the works.

Shares rallied again in Asia on Thursday following reports that China plans to spend billions of dollars to help rebuild the capital of state-run banks. Bloomberg and other reports cited unnamed sources as saying that the Chinese government would spend 1 trillion yuan ($142 billion) on capital injections for lenders.

China’s problems run deep, and the latest measures look to some experts like previous moves that haven’t worked.