Stocks surge to three-year highs

Stocks on Wall Street surged the most this year, with the technology-heavy Nasdaq reaching its highest since December 2000.

Blue chips closed at three-year highs as buoyant US retail sales and small-business optimism confirmed the economic recovery.

Sales at US retailers grew at the fastest pace in five months in February, while the National Federation of Independent Business' index of small-business optimism rose for the sixth-straight month to the highest level since December 2007.

The Nasdaq Composite rocketed 56 points, or 1.9%, to 3039.88. The Dow Jones Industrial Average rose 218.12 points, or 1.7%, to 13,177.83 at the close (9am NZ time). It was the fifth-straight advance for blue chips and its highest level since May 2008.

The S&P 500 index jumped 1.9% to 1395.99, reaching its highest level since June 2008.

Financial and technology stocks lead the advance. Among blue chips, Alcoa rose 3.15%, Caterpillar 3% and United Technologies 2.1%.

Other markets: Europe, Asia up
European stocks pushed higher, lifted by encouraging German business confidence data and relief that eurozone finance ministers agreed in principle to Greece's second bailout.

The benchmark Stoxx 600 Index was 1.8% higher at 269.56. London's FTSE 100 was 0.8% up at 5941.45, Frankfurt's DAX rose 1.1% to 6974.40 and Paris' CAC-40 gained 1.1% to hit 3529.24. Banking stocks were the standout gainers, with the Stoxx Europe 600 index for the sector up 2.2% at 299.42.

The German ZEW survey for March showed the economic expectations index rose sharply to 22.3 from 5.4 in February and compared with expectations for a reading of 10. This is the highest reading since June 2010.

Asian stock markets rallied as banks and commodity-linked stocks climbed, although Japanese shares gave back a bulk of their early gains after the central bank choose not to loosen its monetary policy.

The Nikkei Stock Average rose 0.1% in Tokyo to 9899.08, well off the day's peak above the 10,000-point level.

Australia's S&P/ASX 200 index rose 1.2% to 4336.50 and Korea's Kospi advanced 1.1% to 2025.04.

Hong Kong's Hang Seng Index climbed 1% to 21,339.70, Taiwan's Taiex added 1.3% to 8031.51 and China's Shanghai Composite Index edged up 0.9% to 2455.79.

India's Sensex rose for a third session to end at 1.3% up at 17,813.62.

Commodities: Oil up, gold down
Crude-oil futures settled modestly higher after the US Federal Reserve's policy board signalled no change in its policy of keeping interest rates low.

Light, sweet crude oil for April delivery were 37USc higher at $US106.71 a barrel, the highest since March 5, in New York.

ICE North Sea Brent crude for April settled at an 11-month high of $US126.22 a barrel, up 88USc.

The spread between the two benchmark contracts of $US19.51 is the widest since October 24, 2011. Brent had traded to a record high in euro and sterling terms earlier in the day.

Gold futures extended their losses to a second session, keeping below $US1700 an ounce.

Gold for April deliver shed $US5.60, or 0.3%, to settle at $US1694.20 an ounce in New York, trimming losses as the session progressed. It traded as high as $US1706.20.

Currencies: US dollar holds gains
The US dollar rose after the Federal Reserve kept its accommodative monetary policy stance intact.

The dollar rose to its strongest peak against the yen since April 2011, above ¥83, up 0.9% on the session. The euro weakened further against the dollar, falling to $US1.3069, after being above $US1.31.

The euro was at $US1.3074 compared with $US1.3155 late on Monday. The dollar traded at ¥82.91 compared with ¥82.23.

The pound was at $1.5701 from $1.5642, while the dollar fetched 0.9224 franc from 0.9165 franc.