Global stocks rise on hopes of fresh ECB measures

US stocks rose on Tuesday as signs Greece would stay in the euro zone were enough to spark buying in what has been a weak month for equities, while Facebook plumbed new lows on high volume.

The Dow Jones industrial average rose 125.86 points, or 1.01 percent, to 12,580.69. The S&P 500 Index added 14.60 points, or 1.11 percent, to 1,332.42. The Nasdaq Composite gained 33.46 points, or 1.18 percent, to 2,870.99.

European stocks ended higher, hitting a one-week closing high, boosted by talk of further steps by the European Central Bank to support the region's banks as well as by hopes of fresh measures from China to cushion a slowdown in growth.

Cyclical stocks led the rally, with Volkswagen up 4.3 percent, ArcelorMittal up 4.1 percent and Alstom up 4 percent.

The FTSEurofirst 300 index of top European shares closed 0.7 percent higher at 990.99 points, adding to a tentative recovery rally started last week.

In Asia, the Nikkei share average rose on speculation that China, Japan's largest export market, may soon launch a stimulus programme to avoid a sharp slowdown, with China-related stocks benefiting the most.

The Nikkei reversed earlier losses to close 0.7 percent higher at 8,657.08, rising for the fourth-straight session. The broader Topix rose 0.8 percent to 727.03.