On Friday European stocks advanced after the Italian Senate approved an austerity package, raising optimism that the euro area’s second-most indebted country will contain the debt crisis. US index futures and Asian shares rose.

Telecom Italia SpA gained 4.7% after reporting better-than-expected third-quarter earnings. Banks and insurers rallied. International Consolidated Airlines Group SA, the company created by the merger of British Airways and Spain’s Iberia, jumped 5.2%.

The Stoxx Europe 600 Index increased 0.8% in London, on optimism the vote will be followed by a new government led by former European Union Competition Commissioner Mario Monti. The Senate in Rome voted 156 to 12 to pass the package of measures promised to the European Union in a bid to boost growth and cut Italy’s debt of 1.9 trillion euros, the world’s fourth biggest. Opposition lawmakers did not take part in the vote, allowing the bill to pass.

In Greece, a new unity government led by Lucas Papademos will be sworn in during the day with a mandate to implement budget measures and decisions related to a 130 billion-euro bailout agreed on an the 26th October. Elections may take place on the 19th February.

Asian stocks rose, rebounding from the biggest decline in seven weeks yesterday, as US jobless claims fell and the selection of a new Greek premier tempered concern Europe’s debt crisis won’t be contained.

Japan’s Topix index edged down for a second day, the only major Asian benchmark not to rebound from Thursday, after Tokyo Dome Corp. plunged and Daio Paper Corp. joined Olympus Corp. on a watchlist for delisting. The Topix retreated 0.2% while the Nikkei 225 Stock Average gained 0.2%.