Wall Street up again on Greece, but investors skittish

US stocks rose for a second day on optimism that a solution to Greece's debt crisis was near, although low volume indicated underlying nervousness in the market.

The Dow Jones industrial average gained 145.13 points, or 1.21 percent, to 12,188.69. The Standard & Poor's 500 Index rose 16.57 points, or 1.29 percent, to 1,296.67. The Nasdaq Composite Index added 41.03 points, or 1.53 percent, to 2,729.31.

European shares closed higher as hopes grew that Greece's parliament will vote through the tough austerity measures needed to secure financial aid from international lenders and avoid a default on the country's debt.

The pan-European FTSEurofirst 300 index of top shares closed 0.6 percent higher at 1,080.83 points, its biggest one-day percentage gain in a week.

The Nikkei average rose as investors bought stocks tied to domestic demand with hopes Greece will get through its debt crisis boosting confidence, but further gains may be limited as the index nears the top of its well-worn range. The benchmark Nikkei rose 0.7 percent to 9,648.98, before falling prey to at one point hitting a three-week intraday peak above 9,700 profit-taking. The broader Topix index gained 0.6 percent to 830.34.