Global stock markets rallied Monday after China unveiled a $586 billion stimulus package that investors hoped would help the world economy stave off a deep recession.

Beijing is the latest nation to launch a stimulus program in a bid to jump start economic growth. The U.S. pushed through a $168 billion package earlier this year and momentum is growing for lawmakers to pass a second plan.

The Chinese stimulus package includes loosening of credit restrictions, tax cuts and a massive infrastructure spending program, according to China’s Xinhua news agency.

The money will be spent over the next two years to finance several areas, including low-income housing, technological innovation and rebuilding from several disasters — namely the May 12 earthquake in Sichuan province that killed nearly 70,000 people.

The growth in China’s economy slowed for the first nine months of 2008 compared to the same period last year, officials reported in late October, but still increased by nearly 10%.

The plan was approved Sunday by the State Council.