Global stocks got a shot in the arm from what has become traditional Chinese medicine for inflation: tighter bank lending requirements.

Britain's FTSE 100 rose 0.4 per cent, France's CAC 40 gained 1 per cent, and Germany's DAX jumped 1.6 per cent. Japan's Nikkei closed 1 per cent higher.

U.S. stocks appeared ready to open sharply higher as well: Dow futures rose 0.5 per cent to 11,938, while S&P 500 futures gained 0.6 per cent to 1,274.20.

The surge came after data showed China's consumer price inflation hit a 34-month high of 5.5 per cent, and China's central bank swiftly announced it was raising bank reserve requirements by 50 basis points to a record 21.5 per cent.

This is the central bank's sixth such move this year, and it caught investors by surprise, since the bank has often announced tightening measures when Asian markets were on closed, on holidays or long weekends.

That spurred investors' hopes that China, the world's second-largest economy, can successfully navigate a path between controlling inflation and maintaining growth. The benchmark Shanghai Composite Index gained 1.1 per cent, while the Shenzhen Composite Index gained 1.6 per cent. The Hang Seng was little changed at 22,496.

Oil prices hovered above $97 (U.S.) a barrel. Benchmark crude for July delivery was up 30 cents to $97.60.

Copper rose to $9,023 a tonne from a close of $8,910 on Monday.

The euro climbed to $1.4426, while the loonie edged higher to $1.0258 (U.S.).