World stocks hit their highest level since early September on Thursday after euro zone leader agreed to boost the firepower of the region's rescue fund and struck a deal on a 50 percent writedown for private Greek bondholders.

The MSCI All-Country World Index advanced 1 percent to 308.32, its highest level in eight weeks, though it is still down 6.8 percent this year.

(Reporting by Dominic Lau)