Britain's blue chip index closed up 2.8 per cent to 6,298.92 points today, its highest level since August 20, led by gains from commodities giant Glencore.
Speculation had swirled over whether the Swiss miner would sell some assets to cut its debt, or even consider agreeing to a takeover. Shares in the company closed up 21.05 per cent to 115p per share.
Last week Reuters reported that the company was considering selling a stake in its agricultural assets. And over the weekend, the Telegraph on Sunday suggested that the company's management would listen to offers for the entire company.
Hopes that the Chinese government would take steps to boost growth in the world's second largest economy boosted shares with significant emerging market exposure.
Read more: China is key to securing London's future
"The last few times China tried to encourage economic activity by announcing a stimulus scheme it has backfired, and sent commodity related stocks crashing, but now there is the feeling that something drastic is needed.," David Madden, market analyst at IG Group, said.
Oil stocks were also lifted after Brent crude posted its biggest intra-day gain in two weeks.