$US39b telecoms deal sends Wall Street soaring

Stocks on Wall Street have soared, boosted by a major telecommunications deal and a jump in energy stocks.

AT&T climbed 1.4% after saying it was buying T-Mobile USA from Deutsche Telekom for $US39 billion in cash and stock, a move that would create the nation's largest wireless carrier. The deal helped push up shares of Verizon Communications 2.6%, while rival Sprint Nextel sank 16%.

Crude-oil prices briefly rose above $US103 a barrel as conflict in Libya escalated, boosting energy shares.

At the close (9am NZT), the Dow Jones Industrial Average was up 178.01 points, or 1.5%, to 12,036.53. It was the first time it closed above 12,000 in a week.

Boeing gained 3.2% after its newest 747 passenger jet took to the skies for the first time, marking the third maiden flight of a new Boeing commercial airplane in the past 15 months.

The Nasdaq Composite gained 1.8% to 2692.09 and the S&P 500 index climbed 1.5% to 1298.38, led by its energy sector. Oil exploration company QEP Resources rose 4.4%, while drilling contractor Rowan added 4.2% and petroleum refiner Tesoro gained 4.1%.

Other markets: Europe, Asia up
European stock markets rose, boosted by a 11% rise in Deutsche Telekom shares after the sale of its T-Mobile USA operation to AT&T. The Stoxx Europe 600 index for the sector added 3.7% to 278.27.

The Stoxx Europe 600 index closed up 1.8% at 272.33. The UK's FTSE 100 index added 1.2% at 5786.09, Germany's DAX rose 2.3% to 6816.12 and France's CAC-40 gained 2.5% at 3904.45.

Asian markets rose on higher oil prices and optimism over progress in resolving Japan's nuclear crisis.

Hong Kong's Hang Seng index rose 1.7% 22,685.22, Korea's Kospi added 1.1% 2003.42, Australia's S&P/ASX 200 gained 0.4% to 4642.81, China's Shanghai Composite rose 0.1% to 2909.14 and Taiwan's Taiex advanced 0.9% to 8467.71.

India's Sensex fell 0.2% to 17,839.05. Japanese markets were closed for a holiday.

Commodities: Oil, gold up
Crude futures rose as air strikes on Libya by the US and its allies over the weekend raised concerns about extended oil-supply disruptions.

Light, sweet crude for April delivery traded $US1.59, or 1.6%, higher at $US102.66 a barrel in New York. Brent crude on the ICE futures exchange traded $US1.57 higher at $US115.50 a barrel.

Gold futures rallied as continued uncertainty amid fighting in Libya and the nuclear crisis in Japan raised demand for the metal as a refuge.

The most actively traded contract, for April delivery, was up $US14.10, or 1%, at $US1430.70 an ounce in New York.

Currencies: Yen loses ground
The Japanese yen lost ground to the US dollar and other major rivals as traders took comfort in the stabilising of Japan's nuclear crisis as well as fear of further intervention by the G-7.

The euro advanced to a new four-month high versus the dollar on increasing hopes that the European Central Bank will still raise interest rates next month.

The U.S. dollar traded at ¥81.05 from ¥80.76 late on Friday. The euro rose to ¥115.06 from ¥114.57. The euro rose to $US1.4203, compared with $US1.4168. It touched the highest level since early November.