European and Asian Stocks Rally on Spain Bailout Plan

HONG KONG — The European aid package for Spain’s wobbling banks produced the desired effect in the financial markets on Monday, at least for the time being: Stock markets rallied across Europe, with investors in Spain heaving a particularly large sigh of relief that sent Spanish stocks up 3.5 percent by midday.

Asian stock markets had set the tone earlier with firm gains across the region, and U.S. futures signaled a solid start for Wall Street too.

In the currencies markets, the beleaguered euro firmed, while oil prices climbed amid hopes that global demand could firm if the global economy accelerates once again.

The wide-ranging cheer followed the news over the weekend that European officials had offered as much as $125 billion to recapitalize the weakest Spanish banks. That announcement was widely welcomed as a key step to stave off further financial chaos in a debt crisis that has been festering for the past three years.

The Ibex index in Spain reacted with a jump of more than 5 percent as trading got under way, and was 3.5 percent higher as the morning progressed.

The banks BBVA and Santander rallied 5.6 percent and 4.6 percent, respectively.