Financials led U.S. stocks higher Monday as investors welcomed new global banking requirements that will be ushered in gradually enough to ensure banks won't need to scramble to raise capital. The Dow Jones Industrial Average rose 81.36, or 0.78%, to 10544.13, its biggest gain since Sept. 3. So far this month, the Dow is up 5.29%, its best September start since 1939. Monday, the measure was led by its financial components. Traders were relieved to see the banks likely won't have to raise capital to meet the new rules hammered out in Basel, Switzerland, over the weekend, as central bankers gave the banks nearly a decade to comply with them. J.P. Morgan Chase rose 1.36, or 3.4%, to 41.12, while Bank of America gained 40 cents, or 3%, to 13.95 and American Express added 1.03, or 2.6%, to 41.22. Wells Fargo, not a Dow component, gained 75 cents, or 2.9%, to 26.50. The Standard & Poor's 500-share index rose 12.35, or 1.11%, to 1121.90, its highest close since Aug. 9. Zions Bancorp climbed 1.47, or 7.4%, to 21.31, while Marshall & Ilsley gained 31 cents, or 4.5%, to 7.27 and Huntington Bancshares added 23 cents, or 3.9%, to 6.08. The Nasdaq Composite gained 43.23, or 1.93%, to 2285.71. The measure's four day up streak is its longest winning stretch since the seven-day period that ended July 14. Microsoft led a charge among technology stocks. The software giant jumped 1.26, or 5.3%, to 25.11, following a report that the company is planning to sell some of its debt in order to pay dividends to shareholders and finance a buyback of its own stock, according to Bloomberg Television. Apple rose 3.63, or 1.4%, to 267.04 after announcing plans to sell a Wi-Fi-capable version of its popular iPad tablet computer in China beginning Friday. Only the consumer staples sector closed in the red Monday. Food giant Sara Lee lost 24 cents, or 1.7%, to 14.10, while consumer foods company General Mills dropped 55 cents, or 1.5%, to 36.64.

European market

European stocks ended higher Monday, as a global agreement on new capital requirement rules for banks and robust Chinese economic data fuelled positive sentiment.

The Stoxx Europe 600 index rose 0.7% to 266.45 points. It gained 1.7% last week. Markets gained after new banking rules were agreed in Basel, Switzerland.

The rules aim to prevent the risky activities that triggered the global financial crisis in 2008. Banks will have several years to phase in the new standards.

Banking stocks were enjoying Basel fueled gains. Shares of Credit Agricole SA rallied 5.8% and Societe Generale SA rose 4.3%. BNP Paribas SA gained 2.1%.

The French CAC 40 index advanced 1.1% to 3,767.15. In Germany, shares of Commerzbank AG rose 2.4%, helping the DAX 30 index gain 0.8% to end at 6,261.68. Basel fueled gains spilled over to shares of Deutsche Bank AG, which recovered from earlier losses to end up 1.7%.

The bank confirmed it will raise EUR9.8 billion in new capital, primarily to cover the planned takeover of Deutsche Postbank AG.

Shares of Postbank tumbled 7.8% to EUR24.92 a share in Frankfurt. The U.K. FTSE 100 index rose 1.2% to 5,565.53, getting a double lift from banks and miners. Shares of Lloyds Banking Group PLC jumped 2.6% and Royal Bank of Scotland Group PLC rose 2.4%.

Asian market

Asian stock markets ended higher Monday, helped by data from China released over the weekend that showed upbeat industrial activity after several months of weakness. Most regional banks were rising as investors enjoyed some clarity on the much anticipated Basel capital rules.

Japan's Nikkei 225 Stock Average, South Korea's Kospi Composite, and Shanghai's Composite index all advanced 0.9%. Hong Kong's Hang Seng Index added 1.9%, Taiwan Taiex's was up 2.5% and Singapore's Strait Times Index added 1.5%.

The data from China Saturday showed a stronger than expected 13.9% on year rise in August industrial production, from July's 13.4% gain, while retail sales rose 18.4% from a year earlier, picking up from July's 17.9% increase.

The August inflation rate was 3.5%, in line with market expectations. Japanese stocks were broadly higher, led by gains in banks and oil related shares, though volume was relatively thin at just 700 million shares on the Tokyo Stock Exchange's First Section

Commodities and metals

Base metals on the London Metal Exchange closed higher Monday as the euro rose against the U.S. dollar and global stock markets gained.

LME three month copper closed up 1.9% on the day, at $7,630 a metric ton. It peaked at an intraday high of $7,674.50/ton. Three month tin closed up 2% at $22,295/ton.

Crude futures ended at a one month high Monday as the latest evidence of strong economic growth in China boosted the outlook for future oil demand.

The continued shutdown of a major pipeline bringing Canadian crude to U.S. refiners also supported prices, though robust stockpiles reduced the likelihood of a supply crunch.

Light, sweet crude for October delivery settled up 74 cents, or 1%, at $77.19 a barrel on the New York Mercantile Exchange, the highest settlement since Aug. 11. Brent crude on the ICE futures exchange was recently up 91 cents, or 1.2%, at $79.07 a barrel.

Although strong Chinese economic data and a new global banking agreement dulled investors' appetite for safe haven gold, the metal still managed to eke out a small gain as not all are convinced that everything is going all right with the world's economy.

The most actively traded contract, for December delivery, rose 60 cents, or 0.05%, to settle at $1,247.10 an ounce on the Comex division of the New York Mercantile Exchange.