European stocks closed with gains Monday, boosted by oil's rally and merger hopes in Italy's struggling banking sector. German newspaper Bild this weekend reported the bank's chief executive, John Cryan, wasn't able to secure a deal while he was in Washington, D.C., late last week.

U.S. stocks closed higher Monday as rising optimism that OPEC would reach a deal to cut production-a move seen as necessary for addressing oversupply-delivered a jolt to energy shares.

The outlook for Asian stocks was positive following gains in the US, where energy shares jumped on prospects major crude producers will work to cut output and ease a supply glut. Oil was above US$51 (RM211.02) a barrel and the yen held declines. Shares in Australia and New Zealand rose as futures Japan's Nikkei 225 Stock Average futures signaled gains following a 0.5 per cent bounce in the S&P 500 Index.