Global stocks rebound as G8 leaders pledge growth

Global stocks on Monday rebounded from lows for the year as world leaders emphasized support for growth in the euro zone, and China said priority should be given to maintaining its economic expansion.

The absence of negative news from Europe revived some appetite for US equities despite a selloff of Facebook shares following its lackluster debut on Friday.

The Dow Jones industrial average gained 135.10 points, or 1.09 percent, to close at 12,504.48. The Standard & Poor's 500 Index rose 20.77 points, or 1.60 percent, to finish at 1,315.99. The Nasdaq Composite Index advanced 68.42 points, or 2.46 percent, to close at 2,847.21.

European equities rebounded from five-month lows, with investors seeing value after the steep retreat to five-month lows and taking heart from global politicians' weekend pledge to combat financial turmoil and prevent a euro zone break up.

The FTSEurofirst 300 added 0.5 percent to close at 975.04 points, breaking a week-long losing streak and recovering from a five-month low of 964.66.

In Asia, Nikkei average inched up, with short-covering prompting a recovery from the sharp losses of the previous session, and a call from world leaders for Greece to remain in the euro zone helping to soothe investors' jitters.

The Nikkei put on 0.3 percent to 8,633.89 after sliding 3 percent on Friday to log a seventh straight week of losses, its longest such run since 2001, as the euro zone debt crisis and concerns over global growth intensified.

The Topix slipped 0.1 percent to 725.15, with volume hitting a two-week low, indicating a lack of conviction for the rebound.