Asian and European markets are on the rise in Thursday trading as investors reacted favorably to a new deal reached by European leaders to contain the region's debt crisis.

Japan's benchmark Nikkei index closed just over two percent at the end of its trading session, while the main indexes in Hong Kong and Australia are trading well over two percent. South Korea's stock market is trading 1.5 percent higher.

Over in Europe, London's benchmark index rose 1.7 percent, while trading on the Paris and Frankfurt markets have soared above three percent.

Meanwhile, oil jumped to $92 per barrel in trading on the New York Mercantile Exchange in Singapore, and rose $110 a barrel on the ICE Futures Exchange in London.

The agreement, reached Thursday in Brussels after several rounds of marathon talks, calls for investors to take a 50 percent loss on Greek bonds as part of efforts to contain the eurozone crisis, and reduces Greece's debt to 120 percent of its gross domestic product in 2020. The deal also boosts the region's bailout fund to $1.4 trillion.