Global stocks rallied over 2 percent and emerging stocks gained more than 2.6 percent on Monday after global policymakers agreed an emergency rescue package to stabilize world financial markets.

The $1 trillion package soothed markets and encouraged investors to buy equities and riskier emerging market assets.

The MSCI all-country world index <.MIWD00000PUS> rose 2.05 percent.

Emerging stocks <.MSCIEF> rose 2.66 percent to 951.71 and sovereign debt spreads tightened by 20 basis points to 310 bps over U.S. Treasuries.

(Reporting by Carolyn Cohn; editing by Jeremy Gaunt)