US markets were closed for the Labour Day public holiday, while Europe and Asia markets posted strong gains on Monday.

Wall Street overnight extended its losses after a disappointing non-farm payrolls report in August, which raised concerns over the coming key reports on employment this week. US private sector slashed 298,000 jobs in August, a faster rate than economists' forecast.

US stocks were lower Friday over consumer data. Commerce Department said that consumer spending rose mildly in July, while personal income was unchanged. The downbeat data of US consumer sentiment also weighed on the market.

US stocks opened lower overnight due to the massive drop in Shanghai shares, which also caused a broad selloff in Asia markets. But Wall Street ended the day higher as the energy companies were boosted on hope of an improving demand. The US oil futures rose after the US Department of Energy said US oil inventories plunged unexpectedly.

US stocks plunged significantly overnight despite a better-than-expected US manufacturing survey data. Falls in Asia and Europe markets put heavy pressure on the US stocks. Shanghai stocks dropped 5.8% Monday.

US stocks fell overnight ahead of the Federal Reserve's latest decision on monetary policy and guidance on the outlook for recovery from the recession. The market was also weighed down by the worries that the banking sector has yet to fundamentally improve.

An encouraging employment report sent the US stocks to a more than nine months high on Friday. The Labor Department released a report that the country's unemployment rate unexpectedly dropped to 9.4 per cent, its first decline in 15 months.

US Stocks declined on Wednesday on a weak sales outlook from P & G and concerns over the service and labour sectors. Economic data showed an unexpected fall in activity in the service sector and larger-than-expected losses of private sector jobs.

International banks, such as UK-based Standard Chartered Plc (LON:STAN), HSBC (LON:HSBA) and Australia & New Zealand Banking Group (ASX:ANZ), devoted more efforts to strengthen their exposure in Asia market amid global economy downturn.

Wall Street closed at a nine-month high overnight boosted by earnings reports and encouraging economic data in US manufacturing activity and new car sales. Energy and materials companies also broadly lifted the market.