Greece's decision to scrap a referendum on a European bailout spurred nervous buying, as investors waited to see the outcome of a confidence vote in the Greek parliament.
Britain's FTSE 100 rose 0.9 per cent, France's CAC 40 gained 0.5 per cent and Germany's DAX edged 0.2 per cent higher. Japan's Nikkei closed 1.9 per cent higher, while Hong Kong's Hang Seng surged 3.1 per cent.
Dow futures gained 13 points, or 0.1 per cent, rising to 11,989. S&P 500 futures rose just 0.9 point, or 0.1 per cent, trading at 1,256.60. The U.S. payrolls report for October, due on Friday morning, will likely set the tone for the North American trading day.
Greece's abrupt call for a referendum, just days after a deal was struck to save the debt-stricken country from defaulting, had sparked panic in global financial markets, prompting EU leaders to talk of a possible Greek exit from the euro zone to preserve the single currency.
Under pressure from European leaders, Greek Prime Minister George Papandreou then backed away from the referendum. Facing a revolt within his cabinet, he agreed to step down and make way for a coalition government if his Socialist lawmakers back him in a confidence vote on Friday, raising hopes for a political consensus on the EU rescue framework.
Copper rose for a third day in London, climbing 1.8 per cent to $8,053.25 (U.S.) a tonne.
U.S. crude inched up 40 cents to $94.47 a barrel, also rising for a third straight day.
Gold dipped $5.40 to $1,759.70 an ounce.
The euro remained steady around $1.38, after the European Central Bank's surprise rate cut of 25 basis points on Thursday.
The Canadian dollar traded around 98.08 U.S. cents.