Stockholm/Oslo - Bourses in the Nordic region surged Friday in morning trading on the news of a US government bailout plan to the battered finance and banking sector and a massive cash injection by leading central banks.

The Stockholm bourse index opened up over 5 per cent with banking shares posting double-digit increases.

Telecommunications equipment maker Ericsson increased 5 per cent while clothes retailer Hennes and Mauritz was up 4 per cent.

The main Oslo index surged 6 per cent in opening trading with strong performances from banking sector shares.

Shares in Norway's largest financial services group DnB NOR increased 11 per cent while financial services group Storebrand was up roughly 8 per cent.

State-controlled energy group Statoil Hydro was also up some 4 per cent.

In Copenhagen, the index of 20 leading stocks was on 3.8 per cent. (dpa)