SINGAPORE/LONDON - World stocks hit a record high on Tuesday after China unveiled stimulus measures to support its economy and stock markets, sending Asian and European shares higher and triggering a bounce in commodity prices.

The moves sent Chinese stocks higher, with the blue-chip CSI300 index and the Shanghai Composite index surging more than 4 percent each.

"Investor positioning (in China stocks) is underweight and stimulus measures would set up a positive backdrop over the coming months," said Jefferies economist Mohit Kumar.

The pan-European STOXX 600 index rose 0.8 percent, with China-exposed mining and luxury stocks in the lead. The German blue-chip DAX traded just below all-time highs.

The MSCI world stocks index gained 0.3 percent to touch a record high. Futures pointed to a higher open on Wall Street.

The upbeat mood sent commodity prices higher too, with oil prices, up nearly 1.5 percent. Copper prices jumped to a more than two-month high, aided by expectations of improving demand in China.

Iron ore futures trading on China's Dalian Commodity Exchange logged their largest intraday gain in more than a year.

Gold prices paused after hitting a record high of $2,639.95 earlier as escalating tensions in the Middle East drew safe-haven flows.

RBA sticks to its guns

The Reserve Bank of Australia held interest rates steady as expected and reiterated that policy needed to stay tight, in contrast to the US Federal Reserve which started its easing cycle with a 50-basis-point cut last week.

The Australian dollar slipped 0.1 percent to $0.6831, having touched its strongest level of 2024 earlier at $0.68695.

Meanwhile, the US dollar touched a 20-day high against the yen, up 0.7 percent at 144.54 yen. The Bank of Japan kept interest rates steady last Friday, signaling it was in no rush to raise borrowing costs further.

In a speech at a meeting with business leaders in Osaka on Tuesday, BOJ Governor Kazuo Ueda said it can afford to spend time scrutinizing market and overseas economic developments in setting monetary policy.

Meanwhile, markets are currently evenly split on whether the US central bank will go for another 50 bp cut or a 25 bp cut in November, CME Fedwatch tool showed. They are pricing in 76 bps of easing this year.

Brown Brothers Harriman Senior Markets Strategist Elias Haddad said the market is overestimating the Fed's capacity to ease. "However, it will likely take strong US jobs data to trigger a material upward reassessment in Fed funds rate expectations."

The next non-farm payrolls report is due Oct. 4 and until then, Haddad said a more dovish Fed and a strong US economy will support market sentiment and further undermine the dollar against growth-sensitive currencies.

The dollar index, which measures the US currency against six rivals, was a touch lower at 100.82, not far from the one-year low of 100.21 hit last week.

The euro edged 0.3 percent higher to $1.1141. The currency dropped about 0.5 percent on Monday as soft business activity reports for the eurozone economy raised expectations for more rate cuts by the European Central Bank.