UK and French markets gained more than 1% in morning trading, before slipping slightly, with the FTSE 100 index ending up 0.6% and the Cac 0.7% higher.
Eurozone leaders agreed a new package worth 109bn euros ($155bn, £96.3bn).
Private lenders will also be asked to contribute and, as a result, the Fitch ratings agency said it would consider Greece in "restricted default".
Japan's main Nikkei share index had earlier closed up 1.2%.
US stocks were lower in Friday morning trading in New York, with the Dow Jones index down 0.4%. However, analysts said Wall Street investors were more focused on the US's own debt problems
WILL CSE TOO REACT ON MONDAY?