Global stocks rise on hopes for Europe

US stocks closed at three-month highs for the second day in a row on Monday, extending last week's rally on the hope for more assistance for the troubled euro zone.

The Dow Jones industrial average rose 21.34 points, or 0.16 percent, to 13,117.51 at the close. The Standard & Poor's 500 Index gained 3.24 points, or 0.23 percent, to 1,394.23. The Nasdaq Composite Index advanced 22.01 points, or 0.74 percent, to end at 2,989.91.

European shares closed at their highest level in more than four months, with cyclical shares driving gains on the back of recent US economic data and hopes for fresh policy actions to help debt-market strugglers Spain and Italy.

The FTSEurofirst 300 index ended 0.4 percent firmer at 1,085.79 points, the highest close since late March. Trading remained thin in the summer holiday season, at 82 percent of its 90-day daily average.

In Asia, the Nikkei share average jumped 2 percent to post its biggest one-day gain in more than 3 months, buoyed by solid US jobs data and strong earnings for Toyota Motor Co that provided reassurance amid a poor earnings season.

The Nikkei rose to 8,726.29, but stopped short of strong resistance around 8,741, its 25-day moving average.

The broader Topix rose 1.6 percent to 735.73 in moderate trade, with volume at 84.6 percent of its 90-day average.