Stocks rose extending gains following Wall Street's best week in 4 months, after CIT Group Inc clinched a deal that could help avoid bankruptcy, removing some uncertainty as the financial sector recovers from a deep crisis.

The Dow Jones industrial average gained 104.21 points, or 1.19 percent, ending at 8,848.15 The Standard & Poor's 500 Index rose 10.75 points, or 1.14 percent, at 951.13. The Nasdaq Composite Index added 22.68 points, or 1.2 percent, ending at 1,909.29.

European shares are higher for the sixth straight day, with banks the major gainers as sentiment was lifted by a last-minute $3 billion rescue of US CIT Group.

The pan-European FTSEurofirst 300 index of top shares gained 1.2 percent to end at 881.19 points. The index is up around 36 percent since hitting its lifetime low on March 9.

Hong Kong shares soared 3.7 percent in their fifth straight winning session today, scaling a level last seen in the wake of Lehman Brothers' collapse, as confidence in a turnaround in China's economy grew.

The benchmark Hang Seng Index (HSI) finished 696.71 points higher at 19,502.37, after hitting 19,506.42 points earlier, its highest level since September 22, 2008.

The China Enterprises Index (HSCE) which represents top locally listed mainland Chinese stocks, rose 4 percent to 11,593.13, riding a 2.4 percent rally on the Shanghai Composite Index (SSEC).

Today is a holiday in Japan. On Friday, Nikkei average had risen 0.6 percent.