World stock markets rebounded Monday from last week's heavy selloff, as falling US Treasury yields soothed inflation concerns, dealers said.

London equities jumped 1.6 percent in late morning trade, while Frankfurt was up 1.2 percent and Paris added 1.5 percent just after midday in the eurozone.

Asian stocks rose strongly on bargain-buying as the passage of President Joe Biden's $1.9-trillion Covid relief stimulus through Congress provided additional cheer.

Oil prices climbed before this week's OPEC+ output meeting of oil producers, while the dollar advanced versus the euro and yen.

"Equity markets are showing strong gains as bond yields cool," said analyst David Madden at online trading firm CMC Markets UK.

"Stocks came under pressure last week as a spike in government bond yields encouraged traders to trim their exposure to equity markets.

"The prospect of higher inflation on the horizon has not disappeared but the fear of a higher cost of living is not having the same impact that it once had."

Markets tumbled last week on fears that the recovering global economy, in tandem with vast US stimulus, could fuel inflationary pressures and spark interest rate hikes in the long run.

In a bid to calm markets, several central banks -- including in Japan, South Korea and the European Union -- sought over the weekend to reiterate their pledges to maintain their ultra-loose monetary policies for as long as needed.

Australia's led the way by ramping up its asset purchases to keep rates low.

News that Johnson & Johnson's one-shot vaccine had been given the green light by US regulators -- paving the way for a quicker rollout of inoculations -- added to the positive sentiment on Monday.

Oil prices also rebounded with focus on a key meeting of OPEC and other major producers on Thursday, when they will discuss the huge output cuts that have provided much-needed support to prices.

Russia is said to be keen to turn on the taps again but Saudi Arabia prefers to keep the status quo.

Key figures around 1115 GMT

• London - FTSE 100: UP 1.6 percent at 6,588.64 points
• Frankfurt - DAX 30: UP 1.2 percent at 13,944.42
• Paris - CAC 40: UP 1.5 percent at 5,790.09
• EURO STOXX 50: UP 1.4 percent at 3,687.76
• Tokyo - Nikkei 225: UP 2.4 percent at 29,663.50 (close)
• Hong Kong - Hang Seng: UP 1.6 percent at 29,452.57 (close)
• Shanghai - Composite: UP 1.2 percent at 3,551.40 (close)
• New York - Dow: DOWN 1.5 percent at 30,932.37 (close Friday)
• Euro/dollar: DOWN at $1.2041 from $1.2075 at 2200 GMT
• Pound/dollar: UP at $1.3950 from $1.3933
• Euro/pound: DOWN at 86.32 pence from 86.66 pence
• Dollar/yen: UP at 106.70 yen from 106.57 yen
• Brent North Sea crude: UP 1.2 percent at $65.22 per barrel
• West Texas Intermediate: UP 1.3 percent at $62.32 per barrel

Source: News24