World markets open higher after US rally

markets opened higher Tuesday following Monday’s late rally on Wall Street.

In early trading, Japan’s benchmark Nikkei 225 index was up 0.5 percent at 8,582.15. Australia’s S&P/ASX200 index was up 1.4 percent to 4,094.10. New Zealand’s benchmark NZX 50 was up 0.2 percent to 3,270.74.

The Dow Jones Industrial index ended Monday up nearly 69 points, or 0.6 percent, at 11,061 after a late afternoon rally pushed the stock market higher.

The Dow Jones industrial average rose 0.6 percent to close at 11,061.12, with all of the gains coming in the last 10 minutes of trading.

Traders said a combination of technical factors and reports that China was buying Italian government bonds triggered the late spurt of buying.

The S&P 500 index rose 0.7 percent to close at 1,162.27. The tech-heavy Nasdaq composite index rose 1.1 percent to 2,495.09.

Markets in Europe and Asia plunged Monday as investors worried that Greece could be edging closer to default.

Greece is being kept solvent by a (euro) 110 billion ($150 billion) international rescue loan package, while an agreement in July to double the bailout size has yet to be implemented. The cash lifeline, without which the country would go broke in a few weeks, is conditional on Athens meeting its ambitious savings targets.