A roundup of trading on major world markets:

NEW YORK – US stocks closed sharply higher Thursday after European leaders reached a deal to resolve the eurozone crisis and new US growth data damped down worries of a new recession.

The Dow Jones Industrial Average jumped 339.51 points (2.86 per cent) to close at 12,208.55, while the broader S&P 500 gained 42.59 points (3.43 per cent) to 1,284.59, and the Nasdaq Composite rose 87.96 points (3.32 per cent) to 2,738.63.

The S&P and Nasdaq were up more than four per cent in afternoon trade before profit-taking set in; the surge followed four to six per cent gains on most European bourses after European Union leaders agreed to a comprehensive plan to shore up the eurozone.

All 30 Dow blue chips were higher, with Bank of America jumping 9.6 per cent, JPMorgan Chase up 8.3 per cent, Citigroup rising 9.5 per cent and Goldman Sachs up 9.5 per cent.

Investors had worried about how the impact of a feared Greek debt default could cripple Europe’s banks, with the fallout hitting the US financial sector.

Aluminum giant Alcoa soared 9.5 per cent, boosted by the news on US growth and a possible rebound in Europe, a key market, and that it had inked an agreement for a possible new smelter project in Angola.

The renewed confidence in the eurozone sent bond prices dropping sharply. The yield on the 10-year Treasury rose to 2.40 per cent from 2.20 per cent late Wednesday, while the 30-year Treasury was at 3.45 per cent, up from 3.22 per cent.

Bond yields and prices move in opposite directions.

LONDON – European markets soared in a massive relief rally on Thursday after EU leaders agreed a deal to solve the eurozone debt crisis and data showed the US economy growing faster than expected.

Dealers said there may be many reservations about the deal but the immediate reaction was one of relief that European leaders had finally come up with a coherent response to a crisis threatening to sink the euro and the world economy.

The banks performed best, having been under intense pressure on concerns over their exposure to Greek government debt, with private sector creditors now agreeing to take losses of 50 per cent on their holdings of Greek bonds.

This is combined with more than 100 billion euros ($A134.3 billion) in funds to help the banks cover their losses, ensuring the European banking system escapes the worst of any fallout.

Dealers said figures showing the US economy grew 2.5 per cent in the third quarter, up sharply from the second and ahead of forecasts for around 2.3 per cent, also gave sentiment a boost.

In London, the FTSE-100 index of top companies closed up 2.89 per cent to 5,713.82 points while in Paris, the CAC-40 jumped 6.28 per cent to 3,368.62 points. In Frankfurt the DAX 30 gained 5.35 per cent to 6,337.84 points.

Other European markets posted similar sharp gains after months of turmoil driven by worries the eurozone debt crisis could torpedo the euro and push the global economy back into recession.

In late trade, the euro was at $US1.4190, up sharply from $US1.3908 in New York late Wednesday. The dollar fell to 75.77 yen from 76.21 yen.

HONG KONG – Asian markets surged as European leaders announced a deal to tackle the region’s crippling debt crisis.

Japan said it would take the “necessary measures” to help stabilise the eurozone to protect its own economy, amid reports China and other top emerging economies planned to helped finance the region’s beefed-up bailout fund.

Tokyo jumped 2.04 per cent, or 178.07 points, to 8,926.54, Seoul added 1.46 per cent, or 27.73 points, to 1,922.04, and Sydney closed 2.49 per cent, or 105.7 points, stronger at 4,348.2.

Hong Kong rallied 3.26 per cent, or 622.16 points, to 19,688.70, while Shanghai ended 0.34 per cent, or 8.13 points, up at 2,435.61.

Sydney was closed for four hours soon after opening due to a technical glitch.

In Tokyo, Olympus shares surged more than 22 per cent, one day after the camera maker’s under-pressure chairman and president resigned over a fee payments scandal.

The firm had lost more than 50 per cent of its value since the sacking earlier this month of its British chief executive after he raised doubts over advisory fees tied to a series of buyouts.

WELLINGTON – Wellington closed 0.20 per cent, or 6.50 points, higher at 3,303.47.

Fletcher Building rose 2.5 per cent to NZ$6.61 and NZ Oil & Gas surged 7.7 per cent to NZ$0.70.