LONDON, Jan 23 Reuters Global stocks neared onemonth highs on Tuesday, after the Bank of Japan left monetary policy unchanged, bolstering the yen and Japanese stocks, while Chinese equity investors took little heart from speculation of a huge government rescue package.

The MSCI AllWorld index was up 0.2, near onemonth highs, thanks in part to a 3 rebound in Hong Kong stocks that slumped the previous day, when foreign outflows gathered pace and short selling surged.

Chinese stocks staged a more muted recovery, having touched their lowest in five years the previous day after the country39;s cabinet pledged to take more effective measures to stabilise market confidence. One option included mobilising some 2 trillion yuan 278.53 billion to support the stock market, according to a Bloomberg News report.

Elsewhere, investors have been encouraged by the prospect of falling interest rates in other major economies, including the United States, the euro zone and Britain, which have seen the benchmark U.S. SP 500 officially enter a bull market and Germany39;s DAX trade within sight of late 202339;s alltime peaks.

Concern about the Chinese economy, where the real estate in particular is under stress, has seen foreign investors take a big step back in the last couple of years.

Lombard Odier economist Samy Char said the risk of the kind of aggressive selloff that has hit Chinese markets this week spilling into other parts of the financial world was low, but pain for domestic…