US investors overcome nuclear fears

Stocks on Wall Street rose for the first time in four days as the focus turned to the realisation that the rebuilding efforts in Japan could lift energy and industrial companies.

Meanwhile, fears of a nuclear meltdown subsided as latest reports indicated efforts to cool spent fuel rods at the stricken Fukushima power station were succeeding.

After falling 3.6% from Monday through Wednesday, the Dow Jones Industrial Average was up 161.21 points, or 1.4%, to 11,774.51 at the close (9am NZ time).

The Nasdaq Composite gained 0.7% to 2636.05 and the S&P 500 index added 1.3% to 1273.70, as the energy and industrial sectors led that benchmark's gains.

Tokyo leads Asia lower, Europe surges
Japanese stocks fell for the third time this week. The Nikkei Stock Average ended 1.4% lower at 8962.67. It has plummeted 13% this week.

Shares in Tokyo Electric Power, operator of the troubled nuclear-power plant, finally traded and fell 13%. The shares had been under a trading limit, with too large a gap between bid and offer to allow for a transaction.

Among other Asian markets, Hong Kong's Hang Seng Index slid 1.8% to 22,284.43, China's Shanghai Composite fell 1.1% to 2897.30 and India's Sensex lost 1.1% 18149.87, weighed by a gloomy inflation forecast by the Reserve Bank of India.

Korea's Kospi climbed back from early losses to edge up 0.1% to 1959.03. Along with New Zealand, it was the only market in Asia to rise.

European stocks surged on hopes the nuclear situation in Japan is being contained and as investors waited for a G7 conference call to discuss the impact of last week's earthquake on the global economy and financial markets.

The Stoxx Europe 600 index finished 1.9% higher at 267.08. London's FTSE 100 was 1.7% higher at 5696.11, Frankfurt's DAX rose 2.2% to 6656.88 and Paris' CAC-40 Index was 2.4% higher at 3786.21.

Commodities: Oil, gold up
Oil futures surged past $US101 a barrel as Japan claimed progress in controlling the crisis at a damaged nuclear plant and Western countries appeared closer to intervening in Libya.

Light, sweet crude for April delivery settled up $US3.44, or 3.5%, at $US101.42 a barrel in New York, settling above $US100 for the first time since Monday.

Brent crude for May delivery on the ICE Futures exchange recently rose $US4.30 per barrel, or 3.9%, to settle at $US114.90 a barrel. The April contract expired at $US110.62 a barrel.

Gold futures rose above $US1400 an ounce. The most actively traded contract, for April delivery, settled up 0.6%, or $US8.10, at $US11404.20 an ounce in New York. The closer March contract settled $US8 up at $US1404.00.

Currencies: Yen rises higher
The yen rose against both the dollar and the euro as markets remained on high alert for any signs of intervention by Japanese authorities to weaken the yen.

The US dollar had plummeted to a post-World War II low of ¥76.25 in very early Asian trading but recovered to stabilise around ¥79. The euro sank to as low as ¥106.60 but clawed back most of its losses to trade at around ¥110.

The euro traded recently at $US1.4010, compared with $US1.3890 late on Wednesday in New York.

The dollar was at ¥78.84 compared with ¥79.62 yen immediately before the dramatic selloff and ¥79.85 late on Wednesday in New York.

The euro was at ¥110.45 from ¥110.67, while the pound was trading at $US1.61432, compared with $US1.6022.