World sharemarkets are set to rebound as the trading day continues.

This follows the decision of the Greek parliament approved an unpopular austerity bill after meeting all weekend.

The 199-74 vote (with 27 abstentions) was passed late Sunday night in Athens and against a backdrop of serious violence on the streets outside.

Similar protests were held in other Greek towns and cities, including the holiday islands of Corfu and Crete.

Beyond the austerity measures, the legislation outlines the terms of a separate bond-swap plan that will reduce the debt Greece owes to its private-sector creditors by around €100 billion.

Approval paves the way for Greece to secure a second $130 billion bailout from the European Union and International Monetary Fund and avoid a messy default.

Uncertainty over the outcome roiled world sharemarkets last week, ending a six-week rally on Wall Street and triggering losses elsewhere.

The Australian and Japanese market have risen in early trading on news of the settlement. The ASX/S&P 200 is up 0.2% to 4254 and the Nikkei Average is up 0.2% to 8963.

Fire-bombs and tear gas exploded outside while legislators hammered out €3.3 billion in wage, pension and job cuts for this year alone.

More than 45,000 protestors, many facing steep cuts in pensions, wages and a bigger fall in living standards besieged the building in two demonstrations.

A minority were met with tear gas by the 4000 policemen after throwing fire bombs.