Global equity markets staged a massive relief rally on Monday after officials agreed to a 500 billion euro emergency rescue package to avert a festering sovereign debt crisis in Europe from engulfing the rest of the world.
The fund will give the 16 countries that use the euro access to 440 billion euros worth of loan guarantees.
It will also provide more than 60 billion euros of emergency funding from the European Commission.
In addition, the International Monetary Fund will lend a further 250 billion euros to troubled countries if it's needed.
The size of the deal took markets by surprise, with Wall Street trading about 4% up.
The interest rate on two-year Greek bonds fell immediately, from just over 18% to under 5%.
The Dow Jones Index closed up 405 points, or 4%, at 10,784.
The Nasdaq Composite finished 109 points higher, or 4.8%, at 2375.
In Britain, the FTSE 100, recorded its biggest one-day percentage rise in nearly 18 months. It leapt 264 points, or 5.2%, to 5387.
Germany's main stock market index, the DAX, rose 5.3% to 6018 and the CAC-40 in France rose 9.7% to 3720.
Earlier, the Nikkei index in Japan was up 1.60%. The Australian 200 Index closed 119 points higher, or 2.7%, at 4600.
The NZX 50 closed yesterday up 12 points, or 0.3%, at 3171.
At 8.20am on Tuesday, the New Zealand dollar was trading at 72.29 US cents, 80.08 Australian cents, 48.63 pence, 67.38 yen and 0.5655 euro. The Trade Weighted Index was at 68.55.
Brent crude oil was trading at $US77.97 per barrel and gold was trading at $US1202.75 per ounce.