World financial markets began the new trading year on a positive note Wednesday after the hard-won deal over the so-called US fiscal cliff resulted in a relief rally in leading bourses.
Europe's benchmark Stoxx 600 index climbed 1 per cent to 283.27 points in early trading, as stocks across Asia posted solid gains.
Traders saw the US deal aimed at averting automatic across-the-board tax rises and big budget cuts as helping the markets regain the momentum that first emerged in September last year.
Europe's major bourses posted convincing gains, with the region's biggest share market in London rising by 1.58 per cent in early trading. Stocks in Frankfurt jumped by 1.96 per cent and by 1.74 per cent in Paris.
US stock futures also pointed to shares on Wall Street opening 1.6-per-cent higher Wednesday after US lawmakers headed off the threat of a renewed recession in the world's biggest economy by signing off on the fiscal cliff agreement.
The vote in Washington resulted in Hong Kong's Hang Seng Index jumping 2.9 per cent to 23,311.98, closing above 23,000 for the first time since June 2011.
At the same time, Australia's S&P/ASX 200 Index advanced 1.2 per cent to 4,705.94, while South Korea's Kospi Index finished the day up 1.7 per cent at 2,031.1.
Singapore's Straits Times Index closed 1.1-per-cent higher at 3,201.74.
Stocks markets in Japan and mainland China were closed for a holiday.