European and Asian share indexes rose after the world's biggest central banks promised to inject billions of dollars of cash into global financial markets.
Wall Street shares have risen, adding to Tuesday's advances when the Dow Jones Industrial Average made its biggest points gain since 2002.
London's FTSE 100 index was 1.1% higher, France's Cac 40 added 1.4% and Germany's Dax rose 1.1%. Earlier, Japan's Nikkei closed a 1.6% higher.
The rises were sparked by news of co-ordinated action by central banks to provide liquidity to banks.
News of co-ordinated plan by the banks gave US stock indexes their biggest one-day gain in five years on Tuesday.
The Dow Jones rose was up 82.0 points or 0.7%, after London's FTSE 100 closed up 1.5%, Germany's Dax rose 1.2% and the Cac 40 gained 1.5%.
The move aims to ease the global credit freeze which threatens economic growth.
Earlier, Japan's Nikkei rose 1.6% and Hong Kong's Hang Seng closed up 1.9%.
Tight times
Tight times
Banks have been reticent to lend to each other and consumers after suffering billions of dollars of losses on investments linked to the weakening US housing market.
The cash injection from central banks is designed to ease the global credit freeze, which threatens economic growth.
Banks have been reluctant to lend to each other and consumers after suffering billions of dollars of losses on investments linked to the weakening US housing market.
The central banks, which include the Bank of England and the US Federal Reserve, will pump more than $200bn (£98bn) into the banking system in an attempt to stimulate lending.
The central banks, which include the Bank of England and the US Federal Reserve, will pump more than $200bn (£98bn) into the banking system in an attempt to stimulate lending.
Banks, which have been hard hit by the credit crisis, saw their shares rise in Europe on Wednesday.
Banks, which have been hard hit by the credit crisis, saw their shares rise in Europe on Wednesday.
Societe Generale added 3.2% and BNP Paribas climbed 2.2%. UBS rose 3.4% and Credit Suisse added 3.8%. Royal Bank of Scotland was also higher, adding 3.1%
Societe Generale added 6.2% and Credit Agricole rose 4.4%. UBS rose 5.9% and Credit Suisse added 5.7%. Royal Bank of Scotland was also higher, adding 4.1%
Shares in Australia, Singapore and India earlier climbed more than 2%. South Korea and Hong Kong were up by more than 1%.
Shares in Australia, Singapore and India earlier climbed more than 2%. South Korea and Hong Kong were up by more than 1%.
Not enough?
Not enough?
However, some analysts questioned whether the cash injection would help solve the problems that are now gripping financial markets and threatening to slow growth in some of the world's biggest economies.
However, some analysts questioned whether the cash injection would help solve the problems that are now gripping financial markets and threatening to slow growth in some of the world's biggest economies.
"Yesterday's move was like a shot in the arm for the market, but it hasn't gotten at the real root of the illness," said Norihito Fujito, a strategist at Mitsubishi UFJ Securities.
"Yesterday's move was like a shot in the arm for the market, but it hasn't gotten at the real root of the illness," said Norihito Fujito, a strategist at Mitsubishi UFJ Securities.
The promise of extra cash on Tuesday was aimed at making it easier for businesses and consumers to borrow money by giving banks greater access to cheaper funds.
The promise of extra cash on Tuesday was aimed at making it easier for businesses and consumers to borrow money by giving banks greater access to cheaper funds.
Edmund Shing, a strategist at BNP Paribas said: "We have to see the real proof of the pudding in the eating".
Edmund Shing, a strategist at BNP Paribas said: "We have to see the real proof of the pudding in the eating".
Mr Shing said that if interbank lending rates - the rate at which they lend to each other - did not fall then "the central banks will have failed" and it was unlikely that credit conditions would improve.
Mr Shing said that if interbank lending rates - the rate at which they lend to each other - did not fall then "the central banks will have failed" and it was unlikely that credit conditions would improve.
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