The Australian sharemarket is set to climb higher on Tuesday when it plays catch-up to the reaction of global equities markets to Europe's 100 billion euros ($A126 billion) bailout of Spanish banks.
By 9.31am on Monday the ASX 24's June share price index futures contract was up 35 points at 4107 points with 4211 contracts traded, indicating a positive start for the local market after the Queen's Birthday public holiday in the Eastern States.
European finance ministers on Sunday agreed to lend Spain up to 100 billion euros to support the country's beleaguered banks after a two-and-a-half-hour conference call of 17 European members concluded.
"The loan amount must cover estimated capital requirements with an additional safety margin, estimated as summing up to 100 billion euros in total," Eurogroup said.
The deal will make Spain the fourth and biggest country to ask Europe for help, after its banks endured spiralling bad debts since Spain's property bubble burst.
"That's a very positive event and should be positively greeted (by markets) on Monday," CommSec chief economist Craig James said.
"It could be a big session for the world's share markets but, unfortunately, we won't be able to participate until Tuesday."
Falling Chinese inflation data should also boost markets because it affords China more room to increase economic stimulus, Mr James said.
China's consumer prices rose 3.0 per cent in May, down from 3.4 per cent a month earlier.
New Zealand's NZX, the first equity market to react to the weekend's events, was 0.24 per cent higher at 3458 points by 9.36am on Monday.
Major Asian bourses soared, with Japan's Nikkei gaining 2.28 per cent to 8651.71 points and its Topix index jumping 2.09 per cent to 732.74 points.
Hong Kong's Hang Seng was 2.3 per cent higher at 18,927.50 by 10.04am.
Wall Street's major indices closed higher on Friday with investors encouraged at the prospect of Spain asking European leaders for a rescue package for its banks.
The Dow Jones Industrial Average gained 93.24 points, or 0.75 per cent, to 12,554 points, while the broader Standard & Poor's 500 added 10.67 points, or 0.81 per cent, to 1325.7.
The tech-laden Nasdaq composite jumped 27.4 points, or 0.97 per cent, to 2858.4 points.
On the local market, the week ahead will be dominated by the release of economic data.
On Tuesday, the Australian Bureau of Statistics will release lending finance data for April, and National Australia Bank will release a survey of business confidence in May.The Westpac/Melbourne Institute will report the results of its survey of consumer confidence on Wednesday.