US stocks rise as investors see hope in gloom

Materials stocks on Wall Street led an afternoon rally as investors saw positive signs in the Japanese rebuild after shares plummeted earlier on a record low in February new US home sales.

Investors figured that Japan's reconstruction could help companies that produce commodities such as aluminum and steel. As a reult, Alcoa rose 2.4%.

However, the global scene continued to weigh on stocks, as did the Federal Reserve’s decision not to allow Bank of America, to boost its dividend. The shares shed 2.0%.

Oil traded above $US105 a barrel amid more air attacks against the regime of Libyan leader Muammar Gaddafi. Unrest in Syria and Bahrain continued while in Israel a bomb exploded at a crowded bus stop in central Jerusalem, killing one and wounding more than 30 people in what appeared to be the first Palestinian terrorist attack in the city in several years.

In Japan, the government said radioactive iodine in Tokyo drinking water was more than two times higher than the limit considered safe for drinking by infants, helping to push the Nikkei Stock Average down 1.7%.

At the close (am NZT), the Dow Jones Industrial Average was up 67.24 points, or 0.6%, to 12,085.87. The S&P 500 index was up 0.3% at 1297.49 while the Nasdaq Composite was up 0.5% to 2698.30.

Other markets: Japanese shares plunge, Europe mixed
News of radioactive contamination in Tokyo tap water prompted a late selloff, sending the Nikkei Stock Average down 1.7% to 9449.47. Elsewhere, Asian markets were mixed.

China's Shanghai Composite rose 1% to 2948.48, Australia's S&P/ASX 200 gained 0.2% to 4652.40, Taiwan's Taiex added 0.4% to 8545.08 and India's Sensex rose 1.2% to 18,206.16.

Korea's Kospi slipped 0.1% to 2012.18 and Hong Kong's Hang Seng index fell 0.1% to 22825.40.

European stocks closed higher after a volatile session that moved between gains and losses. Resource issues put in the best performance.

The Stoxx Europe 600 index for the sector rose 2% to 583.63 as metals prices rose.

The benchmark Stoxx Europe 600 index closed up 0.5% at 273.11, while the UK's FTSE 100 index was 0.6% higher at 5795.88, Frankfurt's DAX index was up 0.4% at 6804.45 and Paris' CAC-40 index gained 0.4% to 3913.73.

Commodities: Oil, gold up
Oil futures rose as fighting continued in Libya and a report showed US petrol supplies falling sharply.

Light, sweet crude for May delivery rose 7USc, or 0.7%, to $US105.74 a barrel in New York. The April contract expired on Tuesday at $US104 a barrel.

Brent crude on the ICE futures exchange was down 9USc at $US115.61 a barrel.

Gold futures traded modestly higher. The most actively traded gold contract, for April delivery, was up $US3.70, or 0.3%, at $US1431.30 an ounce in New York.

Currencies: Dollar benefits from safety flows
The US dollar rose broadly as global events prompted a renewed interest in the greenback as an attractive safe-haven option.

The euro fell to session lows of $US1.4099 from $US1.4199 late on Tuesday. The dollar also moved to a high of 0.9088 Swiss franc from 0.9033 franc.

The dollar was at ¥80.80 from ¥80.91 late on Tuesday. The UK pound traded at $US1.6237 from $US1.6379.