Stocks stall as Egypt flares (UPDATED)

Stocks on Wall Street finished mixed as investors moved cautiously after Tuesday's strong gains - the biggest one-day rise in two months.

A violent turn in the anti-government demonstrations in Egypt was offset by encouraging private-sector employment in the US and another raft of mainly positive corporate earnings.

The number of private-sector jobs rose in January for the 12th consecutive month.

Time Warner rose 8.6% after fourth-quarter profit rose 22%, Electronic Arts rose 16% after the video game publisher announced a better-than-expected forecast for the current quarter and confectioner Hershey was up 3.1% after fourth-quarter earnings rose 6.9% on improved sales and margins.

At the close (10am NZ time), the Dow Jones Industrial Average was up just 1.81 points to 12,041.97, while the S&P 500 index was down 0.3% to 1304.03. The Nasdaq Composite Index was down 0.1% to 2749.51.

Other markets: Europe, Asia up
European stocks mostly rose, led by basic resources and banks, but gains were fairly muted as investors weighed encouraging economic data against political unrest in the Middle East and North Africa.

The Stoxx Europe 600 index was 0.1% higher at 284.35. Frankfurt's DAX was down 0.1% at 7175.87 and the CAC-40 Index in Paris was down 0.2% at 4063.92.

In London, the FTSE 100 Index rose 0.6% to 5996.53, benefiting from its heavy weighting of mining and resources stocks.

The Stoxx Europe 600 resources index gained 1.7% to 625.72%, while the banking sector index was up 1.3% at 219.93.

Asian markets ended higher. Japanese stocks were buoyed by advances in exporters and resource sector shares.

A rise in Australia was capped by a drop in insurance companies as cyclone Yasi approached Queensland.

The Nikkei Stock Average climbed 1.8% in Tokyo for its best percentage gain since early December, closing at 10,457.36.

Australia's S&P/ASX 200 added 0.9% to end at 4796.51, Hong Kong's Hang Seng index finished 1.8% higher at 23,908.96 and Indonesia's JSX Composite rose 1.1% to 3480.83.

Markets in Korea, China, Taiwan and Vietnam were closed for the Lunar New Year holiday this week.

Commodities: Oil up, gold down
Crude futures held on to recent gains as traders looked past rising US fuel supplies to growing violence in Egypt, where unrest could threaten vital oil supply routes.

Light, sweet crude for March delivery settled 9USc higher at $US90.86 a barrel in New York. Brent crude on the ICE futures exchange traded 68USc higher at $US102.42 a barrel.

Gold futures fell. The most actively traded contract, for April delivery, settled $US8.20, or 0.6%, lower at $US1332.10 an ounce in New York.

Currencies: Euro down, pound up
The euro retreated from a near three-month high against the US dollar, as political turbulence in Egypt coalesced with the euro-zone's debt crisis to generate risk-aversion.

The dollar rebounded from its weakest level since early November against the euro.

The euro traded at $US1.3804, down from $US1.3831 late on Tuesday, and unchanged at ¥112.52. The dollar bought ¥81.53, up from ¥81.35.

The UK pound was the best performer major currency after the Bank of England's deputy governor indicated that interest rates would have to be lifted if commodity prices remained high. The pound traded at $US1.6201, up from $US1.6149.