European stocks advanced on Friday, booking the best month of the year after a string of upbeat data and a rally for the banking sector on rising expectations for tighter monetary policy. The Stoxx Europe 600 index SXXP, +0.47% rose 0.5% to 388.16, and registering its highest monthly advance, up 3.8%, since December 2016. The index has risen for three straight weeks, and ended the quarter with a return of 2.3%, rebounding from a 0.5% loss in the second quarter.

U.S. stocks wrapped up the week, the month and the quarter on a high note, with the S&P 500, Nasdaq Composite and Russell 2000 hitting all-time highs on Friday. All the main indexes posted weekly, monthly and quarterly gains. The S&P 500 index SPX, +0.37% gained 9.30 points, or 0.4%, to 2,519.36, closing at a record for the 39th time this year. The benchmark index gained 0.7% over the week and 1.9% over the month. The S&P has risen for eight consecutive quarters, gaining 3.9% since July.

Asian-Pacific equities opened higher Monday, benefiting from broadly upbeat sentiment and gains in the U.S. dollar, though several major markets in the region were shut for holidays. Australia's S&P/ASX 200 XJO, +1.02% led gains, rising 1.1% amid a weaker Australian dollar against the U.S. dollar, helping support export stocks. Among heavyweight export-focused stocks, Rio Tinto RIO, +2.31% surged 2.5%, while Fortescue Metals FMG, +2.14% added 2.1% and BHP Billiton BHP, +1.51% was up 1.7%.