Russian stocks surged in Wednesday trading on news that China pledged to invest in Europe’s bailout funds and boost its euro asset holdings.
As of 10:52 a.m. Moscow time (06:52 GMT), Russia’s ruble-denominated MICEX stock index rose 0.9 percent to 1,576.32 points, its highest level since August 2011, while the dollar-denominated RTS surged 1 percent to 1,660.82, the highest level since last September.
People’s Bank of China Governor Zhou Xiaochuan announced on Wednesday that China was prepared to participate in the European Financial Stability Facility intended to provide bailouts to heavily-indebted eurozone countries, and also to increase its holdings of assets denominated in the euro.
“China will always adhere to the principle of holding assets of EU sovereign debt. “We would participate in resolving the euro debt crisis,” a statement welcomed by investors across the world.
Zhou’s comments came a day after Premier Wen Jiabao said China was willing to get “more deeply” involved in resolving Europe’s debt crisis.
