The Chinese economy expanded 6.4 percent in January-March, the same as the previous quarter but better than forecast by analysts in an AFP poll.
Most investors welcomed the vital data because China's economy -- the world's second biggest after the United States -- is a key driver of global growth.
The news follows a number of readings indicating stability in China, with factory activity, exports, new loans and inflation all improving -- tempering concerns about a slowdown that could have a major impact on the global economy.
Markets nevertheless remain concerned over a broader Chinese economic slowdown -- and Beijing's ongoing trade war with Washington.
- 'Not as bad as feared' -
"The longer term trend is very much against China, but these numbers may at least suggest all is not as bad as feared," noted Oanda analyst Craig Erlam.
"And if a trade deal is struck in the coming months with the US, as many expect, perhaps things could even improve."
ThinkMarkets analyst Naeem Aslam added that the data handed a boost to the overall outlook.
"The truth is that the handoff from feeble economic numbers to strong economic numbers is here and this is good news," he said.
"Let's not forget, improving economic conditions over in China means better economic health of the global economy."
In Europe, Frankfurt and Paris gained ground, but London flatlined amid data showing that 12-month British inflation steadied in March at 1.9 percent.
In Asia, markets mostly rose as the Chinese data added to a broadly upbeat mood on trading floors.
Observers put the uptick down to government stimulus including huge tax cuts and measures to make it easier for banks to lend.
Shanghai rose 0.3 percent, Tokyo ended 0.3 percent higher, while Singapore gained 0.4 percent.
- Monetary policy concerns -
However, Hong Kong was slightly lower with analysts pointing out that the improvement could keep policymakers from building on the stimulus tweaks that have provided much-needed economic support.
"The concern is that the People Bank of China may change its stance towards its monetary policy. We may not see that much support from the PBoC," cautioned Aslam at ThinkMarkets.
World markets have enjoyed a strong run-up this year, fuelled by growing optimism that China and the US will hammer out a deal to end their long-running trade war that blighted markets at the end of 2018.
Markets had been given a positive lead by Wall Street, where investors cheered another round of healthy earnings that have raised hopes for the rest of the reporting season.
Elsewhere, oil prices extended gains after a US industry group reported a surprise drop in stockpiles, while OPEC-led output cuts and US sanctions on Iran and Venezuela kept a supply glut in check.
- Key figures around 1030 GMT -
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London - FTSE 100: FLAT at 7,470.77 points
Frankfurt - DAX 30: UP 0.2 percent at 12,128.05
Paris - CAC 40: UP 0.2 percent at 5,540.29
EURO STOXX 50: UP 0.2 percent at 3,469.10
Pound/dollar: DOWN at $1.3046 from $1.3048 at 2100 GMT on Tuesday
Euro/pound: UP at 86.70 pence from 86.45 pence
Euro/dollar: UP at $1.1311 from $1.1281
Dollar/yen: UP at 112.01 yen from 112.00 yen
Tokyo - Nikkei 225: UP 0.3 percent at 22,277.97 (close)
Hong Kong - Hang Seng: FLAT at 30,124.68 (close)
Shanghai - Composite: UP 0.3 percent at 3,263.12 (close)
New York - Dow: UP 0.3 percent at 26,452.66 (close)
Oil - Brent Crude: UP 36 cents at $72.08 per barrel
Oil - West Texas Intermediate: UP 40 cents at $64.45