Dow soars through 12,000 (UPDATED)

Stocks on Wall Street closed above the 12,000 mark for the first time in two and a half years as investors brushed aside unrest in the Middle East to focus on strong earnings and economic data.

The Institute for Supply Management's index of manufacturing activity rose to 60.8 in January, its highest level since May 2004 and topping economists' expectations for a 58.0 reading.

At the close (10am NZ time), the Dow Jones Industrial Average was up 148.23 points, or 1.2%, to 12,040.16. This was its highest close since June 25, 2008. The last time the Dow was above 12,000 was on August 28, 2008, at the height of the global financial crisis.

Pfizer rose 5.3%, after fourth-quarter profit more than tripled from a year earlier, while United Parcel Services climbed 4.1% after its fourth-quarter profit jumped 48% as revenue and margins surged.

The S&P 500 index also passed a milestone, rising 1.6% to 1307.59, its highest since June 19, 2008. The Nasdaq Composite was up 1.7% to 2751.19.

Other markets: Europe, Asia up
European stock markets pushed higher as signs of economic growth offset concerns about the political protests in Egypt and elsewhere in North Africa and the Middle East.

The euro-zone manufacturing sector picked up unexpectedly in January, with the purchasing managers index rising to a nine-month high of 57.3 in January, from 57.1 in December.

In the UK. the PMI rose to 62.0 in January, the highest level since the survey began in 1992. German jobs data rebounded strongly in January, propelled by the country's economic upswing

London's FTSE 100 index was 1.0% higher at 5919.94, Frankfurt's DAX was up 1.1% at 7153.37 and Paris's CAC-40 rose 1.0% to 4046.61.

Asian stock markets were mostly higher.

The Shanghai Composite rose 0.3% to 2798.96, supported by gains in resources and energy stocks after commodity prices surged.

In Tokyo, the Nikkei Stock Average ended up 0.4% at 10,274.50, supported by solid corporate earnings and the euro's recent gains against the yen.

On the downside, Indian shares fell for a fifth straight session to a five-month low. The Mumbai Sensex slipped 1.7% to 18,022.22.

In Sydney, the S&P/ASX 200 ended unchanged at 4752.11 after the Reserve Bank of Australia held policy steady at 4.75%. Insurers fell as tropical cyclone Yasi approached Queensland with Suncorp Group sliding 3%, IAG 2.1% and QBE 1.5%.

Commodities: Oil steady, gold up
US crude-oil prices retreated as fears over oil supply disruptions at the Suez Canal eased, though attention remained fixed on events in Egypt, where massive anti-government protests are continuing.

However, the European contract for Brent crude traded above $US102.

Protests have also spread to Yemen and Algeria, with some expected in Syria this weekend. In Jordan, King Abdullah II has dismissed his government in response to demonstrations over rising food and fuel prices.

Light, sweet crude for March delivery settled $US1.42, or 1.5%, down at $US90.77 a barrel in New York. Brent crude on the ICE futures exchange rose 73USc to $US101.74 a barrel and traded as high as $US102.08.

Despite port closures in Egypt, the Suez Canal remains open to shipping.

Gold futures rose slightly. The most actively traded contract, for April delivery, was up $US5.80, or 0.4%, at $US1340.30 an ounce in New York.

Currencies: Euro up, dollar down
The euro advanced to its highest level in two months against the US dollar, supported by expectations of higher euro-zone interest rates.

Currency levels are being increasingly determined by interest-rate differentials. As a result, investors have been willing to purchase euros based on expected higher returns.

While no one expects any immediate rise by the European Central Bank, inflationary pressures are building and that will require a move before the end of the year.

The euro traded at $US1.3795, up from $US1.3692 late on Monday in New York. It was at ¥112.37, slightly down from ¥112.38.

The dollar bought ¥81.46 compared with ¥82.08 while the pound was trading at $US1.6124, up from $US1.6019.