European shares turned higher and the Chinese offshore yuan fell against the US dollar on Friday, after China cut deposit and lending rates to ease monetary policy in the face of slowing growth.

The pan-European FTSEurofirst 300 extended gains to trade 2.2 percent higher at 1,493.60, with miners jumping 2.9 percent in the minutes after the move.

China's offshore yuan hit a four-week low of 6.3958 to the dollar after the decision.