Emerging market stocks are on track to close in bull market territory as actions by China’s central bank to support economic growth triggered a broad rally for global equities on the first trading day of 2020.

The MSCI Emerging Markets index was up 1.1 per cent to an 18-month high during the New York trading session on Thursday. That put the benchmark up 20.5 per cent from an October 2018 low, giving it a shot at surpassing the 20 per cent threshold that typically signifies a bull market.

Thursday’s advance came in the wake of the People’s Bank of China’s decision earlier in the day to pump $115bn into the country’s financial system. But for some analysts, the actions reflect the challenges China and emerging markets face in 2020 and the likelihood economic growth in those countries will be weaker than forecast.