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Global stocks and oil prices moved higher on Monday as investors gave a cautious welcome to news of an agreement that could avert a catastrophic US debt default, media reports said.

Germany's DAX was up 0.3 per cent in early trade, with France's CAC 40 edging up 0.2 per cent. In Asia, Japan's Nikkei 225 closed at a 33 year high, boosted by optimism over the debt ceiling deal and a weaker yen, which lifted exporters. The index has rallied nearly 20 per cent this year, CNN reported.

US and UK markets were closed on Monday for a holiday. But Dow futures and S&P 500 futures rose around 0.3 per cent, with Nasdaq futures up 0.5 per cent.

US markets made gains Friday on reports that President Joe Biden and US House of Representatives Speaker Kevin McCarthy were nearing a deal to allow the US government to keep paying its bills.

They reached an agreement in principle Saturday to raise the debt ceiling for two years and cap spending. The deal moves the United States one step back from the brink of a historic default, which, if it were to happen, would upend stock and bond markets. It would also cause severe damage to the US and global economy.

Brent crude futures, the global oil benchmark, rose 0.6 per cent to $77.39 a barrel. WTI crude, the US benchmark, gained 0.7 per cent to trade at $73.15 a barrel, CNN reported.

Elsewhere in Asia Pacific, Australia's S&P/ASX 200 closed 0.9 per cent higher. China's Shanghai Composite increased 0.3 per cent. Hong Kong's Hang Seng Index opened higher, but then reversed gains to close 1 per cent lower, dragged down by falls in technology and real estate stocks, CNN reported.