Global shares rise on Greek deal optimism

US stocks ended higher on Thursday, recovering most of the week's losses, after Greece moved closer to a bond swap with private creditors to avoid a messy default.

The Dow Jones industrial average shot up 70.61 points, or 0.55 percent, to end at 12,907.94. The Standard & Poor's 500 Index advanced 13.28 points, or 0.98 percent, to finish at 1,365.91. The Nasdaq Composite Index gained 34.73 points, or 1.18 percent, to close at 2,970.42.

European stocks rallied, reversing half the loss suffered earlier in the week as Greece moved closer to clinch a bond swap deal with private creditors and avoid a messy default that would have ripple effects across the euro zone.

Shares in banks, the main holders of Greek debt, were among the top gainers, with Deutsche Bank up 4.4 percent, Societe Generale up 3.7 percent and Credit Agricole up 2.9 percent.

The FTSEurofirst 300 index of top European shares closed 1.5 percent higher at 1,074.79 points, while the euro zone's blue chip Euro STOXX 50 index added 2.2 percent to 2,514.22 points.

In Asia, Japan's Nikkei average bounced back from a three-day losing streak, lifted by growing expectations that Greece.

The benchmark Nikkei was up 192.90 points or 2.0 percent to 9,768.96, almost fully recouping losses in the previous three sessions. The broader Topix index rose 1.6 percent to 836.16.