European stocks surged with U.S. equity-index futures, while the yen and gold retreated as Greece presented a new plan to stave off default before an emergency summit on the country’s debt crisis. Treasuries declined with German bunds as Spanish and Italian debt rose.

The Stoxx Europe 600 Index advanced 1.8 percent by 8:49 a.m. in London, while Standard & Poor’s 500 Index futures jumped 0.8 percent. Chinese stocks in Hong Kong rose after entering a correction last week. The yen and gold slipped at least 0.3 percent as the euro erased earlier gains. Yields on 10-year Treasury notes and German bunds increased six basis points, while rates on Spanish and Italian notes plunged at least 12 basis points. Oil climbed.

Prime Minister Alexis Tsipras’s new offer “was a good basis for progress at tomorrow’s Euro summit,” European Commission spokesman Martin Selmayr, said in a Twitter posting. JPMorgan Chase & Co. said Greece being ejected from the euro probably won’t rock world markets, while Australia & New Zealand Banking Group Ltd. said the fallout in Asia is unlikely to spread beyond an initial kneejerk.

“European authorities are putting enormous pressure now on the Greek government to play its role,” said Fariborz Moshirian, director of the Institute of Global Finance at the University of New South Wales in Sydney. “Both parties are trying their best to make sure Greece stays. Political forces will prevail and both Germany and Greece will come to some sort of compromise.”

All 19 industry groups on the Stoxx 600 advanced Monday, with 18 more than 1 percent higher. Greece’s ASE Index soared 6.3 percent. Bouygues SA jumped 13 percent after Patrick Drahi’s Altice SA said its cable and wireless unit has made an offer to buy France’s third-largest mobile-phone company from Bouygues. Altice SA climbed 12 percent.

The yen slipped to 123.05 per dollar and gold weakened to $1,196.11 an ounce. The euro traded at $1.1350 after rising to as high as $1.1404. The joint currency advanced 0.8 percent against the greenback in the five days through Friday to cap a third weekly advance.

Tsipras flies into Brussels with a plan for a “mutually beneficial agreement, which will give a definitive solution and not defer the problem,” the government said in a statement.

He’ll meet with European Council head Donald Tusk, European Central Bank President Mario Draghi, International Monetary Fund Managing Director Christine Lagarde, EU Commission President Jean-Claude Juncker and Eurogroup head Jeroen Dijsselbloem before the talks, an e-mailed statement from the Greek prime minister’s office said.

Bunds, Treasuries

German notes due in a decade paid 0.83 percent Monday. U.S. 10-year notes slipped after rallying for a second week. The yield on the securities tumbled eight basis points on Friday, according to Bloomberg Bond Trader data. Australian and Japanese notes were little changed.

Greek bonds rallied, with the yield on Athens’ 10-year notes falling 25 basis points after a 91 basis point jump last week. Two year securities paid 28.28 percent. The yield on Italy’s 10-year securities slid to 2.16 percent and similar Spanish notes offered 2.15 percent.

Asian Equities

Japan’s Topix index climbed 1.1 percent in a second day of gains. The measure slid 1.2 percent last week, the biggest such retreat in more than a month. The Kospi index in Seoul added 0.4 percent Monday, while Australia’s S&P/ASX 200 index rose 0.2 percent, erasing an early loss.

The Hang Seng Index in Hong Kong rose 1.1 percent and the Hang Seng China Enterprises Index added 1.5 percent. The gauge of Chinese stocks listed in the city retreated 11 percent from a May 26 high through Friday, surpassing the 10 percent threshold that denotes a correction for some investors.

Mainland China’s markets are closed for a holiday. The Shanghai Composite Index plunged 13 percent last week, its worst weekly selloff since 2008, amid concern valuations have been pushed to unsustainable levels. About $1.3 trillion was wiped from mainland Chinese equities during the week.

The outstanding amount of margin debt on the Shanghai Stock Exchange fell to 1.479 trillion yuan ($238 billion) on Friday from a record 1.483 trillion yuan the previous day, the first decline since May 22.

U.S. stock-index futures climbed Monday. Contracts on the Dow Jones Industrial Average and the Nasdaq 100 Index gained 0.7 percent.

Brent oil climbed 0.8 percent to $63.46 a barrel, while West Texas Intermediate crude climbed 1 percent to $60.21 per barrel..

Iranian lawmakers approved the outlines of a bill that would ban inspections of military sites and require the lifting of all international sanctions under any deal, the state-run Mehr news agency reported. Diplomats from the Middle East nation, the U.S., U.K., France, Germany, Russia and China are converging on Vienna in an attempt to reach a final agreement on Iran by June 30.

(SOurce: Bloomberg)