*By Rodrigo Campos

NEW YORK (Reuters) – Stocks rose in the first week of 2012, even though news that the U.S. jobless rate neared a three-year low did not whet interest in equities on Friday.

The U.S. market came into the new year revisiting familiar themes, with signs the U.S. economic recovery was gathering speed taking some of the focus off of lingering concerns about the euro zone's debt crisis.

"The news coming out of Europe was negative all week and we're going to finish up, and I think that's a real good performance in light of the background," said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

The Dow rose 1.2 percent, the S&P gained 1.6 percent and the Nasdaq added 2.7 percent for the week, with most gains coming from cyclical sectors tied to growth.

Among the week's largest gainers the KBW bank index (.BKX) jumped 5.7 percent, in contrast with the 2.7 percent fall in the top gauge of European bank stocks (.SX7P).

Data this week painted a rosier picture on the labor, housing and retail markets, auguring a recovery in growth in 2012. The government's report on non-farm payroll jobs for December earlier on Friday was the latest in a list of economic numbers that were stronger than anticipated.

On Friday the Dow and S&P edged lower. Worries about higher bond yields in Italy and Spain, as well as potential oil supply disruptions in the Middle East, were cited as giving investors a pause.

Next week brings bond sales by Italy and Spain. Caution ahead of those auctions sent Italian benchmark yields above 7 percent while yields in Spain's 10-year paper also edged up to end the week at 5.758 percent.

Worries on Wall Street over rising borrowing costs in some euro zone countries kept buying in check on Thursday and Friday.

"There were a lot of fireworks earlier in the week and perhaps there's a little bit of nervousness going into the weekend with Europe and Iran as concerns," said Jim Russell, regional investment manager for U.S. Bank Wealth Management in Cincinnati. "It feels like a tired market."

On Friday, the Dow Jones industrial average (.DJI) dropped 55.78 points, or 0.45 percent, to 12,359.92. The S&P 500 Index (.INX) fell 3.25 points, or 0.25 percent, to 1,277.81. The Nasdaq Composite (.IXIC) gained 4.36 points, or 0.16 percent, to 2,674.22.

Volume remained weak, with about 6.3 billion shares exchanging hands on the New York Stock Exchange, the Nasdaq and Amex, compared with last year's daily average of 7.84 billion shares.

Investor angst receded and the CBOE volatility index (.VIX) fell almost 12 percent this week.

Best Buy Co (BBY.N) shares rose 3.3 percent to $24.22 as the company stood by its profit outlook for the financial year.

Amazon (AMZN.O) and Netflix (NFLX.O) helped boost both the Nasdaq Composite and the discretionaries sector of the S&P 500 (.GSPD). Amazon added 2.8 percent to $182.61 while Netflix gained 8.8 percent to $86.29 and was up nearly 25 percent this week.

Alcoa Inc (AA.N) fell 2.1 percent to $9.16 after the largest U.S. aluminum producer said it will cut global smelting capacity amid a steep drop in metal prices. The Dow component is expected by many Wall Street analysts to post a fourth-quarter loss next Monday.

Roughly eight stocks fell for every seven that rose on the NYSE, while on the Nasdaq slightly more than six issues declined for every five posting gains.

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

WASHINGTON (Reuters) – U.S. securities and futures regulators will see large budget increases to help them implement sweeping new financial regulations under a bill approved by the Senate Appropriations Committee on Thursday.

The plan, which will now go to the full Senate for a vote, would give the Securities and Exchange Commission a fiscal 2012 budget of $1.407 billion, an increase of roughly 19 percent from its current fiscal 2011 budget of $1.185 billion.

The Commodity Futures Trading Commission would also see an estimated 19 percent increase in its funding, jumping from $202 million to $240 million for fiscal 2012, which starts on October 1.

"When it comes to the SEC and CFTC, they maintain the integrity of major markets in the United States and other countries," said Sen. Richard Durbin, who chairs the Senate Appropriations subcommittee that funds the two agencies.

The budget boosts would help the SEC and CFTC undertake the major new responsibilities they have inherited under the Dodd-Frank Wall Street overhaul law, which was enacted last year.

That law splits oversight of the nearly $600 trillion over-the-counter derivatives market between the two regulators, and also gives the SEC greater authority to police hedge funds, credit-rating agencies and municipal advisers.

The fate of funding for the two agencies, however, remains uncertain.

House Republicans who are worried about major Dodd-Frank provisions have generally opposed bolstering the budgets for the SEC and CFTC. Earlier this year, the House passed a bill that would cut the CFTC's budget down to $171.9 million. House appropriators also approved a measure to keep the SEC's funding flat, although it has not faced a full House vote yet.

Some lawmakers have been reluctant to support the CFTC funding boost because some feel its chairman, Gary Gensler, has been "too aggressive" in how he has gone about implementing the new derivatives rules.

"In my view the CFTC has failed to prioritize its rulemaking under Dodd-Frank, proposing unnecessary discretionary rulemaking that is not required by the act and will increase the staffing and funding demands," said Jerry Moran, the top Republican on the subcommittee that overseas the SEC and CFTC.

The argument for a boost to the SEC's budget has been somewhat easier, by contrast, in part because a provision in Dodd-Frank will require the SEC to off-set the money Congress appropriates with the fees it imposes on the firms it regulates.

Despite strong opposition from many House Republicans, one key lawmaker earlier on Thursday signaled possible support for an SEC budget boost, in a move that could help fuel future negotiations.

Congressman Spencer Bachus, the House Financial Services chairman, said in order for the SEC to reform itself and become a more efficient organization, there needs to be more money.

"My personal view is that an increase in funding is probably necessary as part of the reform process," he said.

(Reporting by Sarah N. Lynch and Christopher Doering; Editing by Gary Hill)

NEW YORK (Reuters) – Wall Street stocks rose for a third day on Monday as investors saw Google’s offer for phone maker Motorola Mobility as an excuse to jump back into the market after weeks of sharp selling.

Acquisition activity is often viewed as a sign major corporations sitting on big cash piles are willing to pay for shares even as economic growth remains sluggish.

Motorola Mobility Holdings Inc jumped 55.8 percent to $38.13 after Google offered $12.5 billion to buy the company, which would be Google’s biggest deal ever. Google shares ended down 1.2 percent at $557.23.

With Monday’s gains, the stomach-churning losses incurred last week have now been wiped out. Among big winners were banks, which have been a frequent target for selling. Bank of America Corp rose 7.9 percent to $7.76, making it the Dow’s biggest percentage gainer.

“The shining point throughout this whole debacle is that corporate America is actually doing quite well,” said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco. “It shows that they’re not yet ready to throw in the towel.”

Shares of other cell phone companies also rose, riding hopes of additional takeovers or the possibility of business shifting to Google’s competitors. Blackberry maker Research in Motion advanced 10.4 percent to $27.11 while Nokia jumped 17.4 percent to $6.29.

The S&P financial index rose 3.2 percent. Shares of Bank of America advanced after it said it plans to sell its credit card business in Canada to TD Bank Group.

Three days of market gains follow weeks of intense volatility and a sharp selloff that put the S&P 500 in negative territory for the year. After the rebound, the S&P is now down just 4.2 percent on the year.

“It’s causing people to rethink their view toward the market,” said Nick Kalivas, senior equity index analyst at MF Global in Chicago. “It’s causing people to think more about valuation than they have in recent days.”

The Dow Jones industrial average shot up 213.88 points, or 1.90 percent, to 11,482.90. The Standard & Poor’s 500 Index gained 25.68 points, or 2.18 percent, to 1,204.49. The Nasdaq Composite Index climbed 47.22 points, or 1.88 percent, to 2,555.20.

Trading volume slowed from last week to 8.14 billion on Monday, down from the daily average of approximately 16 billion shares traded last week.

About 10 stocks advanced for every declining stock on the New York Stock Exchange, while roughly four stocks rose for every declining stock on the Nasdaq.

A meeting on Tuesday by French and German political leaders was expected to result in initiatives needed to restore confidence in credit and other markets.

Shares of Lowes Cos Inc were up 0.9 percent at $19.68 after it reported weaker-than-expected quarterly sales and cut its fiscal-year outlook. Wal-Mart Stores Inc and Home Depot Inc report earnings on Tuesday.

In other deal news, world No. 1 oil drilling contractor Transocean is paying double the market price for Aker Drilling to refresh its aging fleet of Norwegian drilling rigs and boost flagging orders. Transocean shares advanced 3 percent to $57.26 in New York.

(Reporting by Ashley Lau; Editing by Kenneth Barry)

HONG KONG (AFP) – Asian stocks gained Friday after the G7 rich nations vowed to intervene in forex markets to stem the yen’s rise and support Japan’s economy amid a nuclear crisis after a record earthquake.

Traders immediately welcomed the decision after the morning talks between authorities in Japan, the United States, the eurozone, Canada and Britain, with the yen sliding almost immediately against the dollar and European single unit.

And oil resumed its upward march after the United Nations agreed to air strikes on forces fighting for Libyan strongman Moamer Kadhafi as he wages an offensive against anti-government rebels.

In morning Tokyo trade the US dollar traded at 81.71 yen, compared with 78.95 in late US trade Thursday and the euro bought 114.97 yen from 110.67.

The Japanese unit soared to a post World War Two high 76.52 on Thursday as traders grew nervous about the situation at the nuclear plant as crews battled to avert a meltdown after it was rocked by last week’s quake and tsunami.

The weakening yen boosted Japan’s exporters Friday, sending the Nikkei stock index 2.88 percent higher in the afternoon.

However, the market was still more than 10 percent down over the week after diving 16 percent on Monday and Tuesday, its biggest two-day loss in 24 years.

News of the intervention had a knock-on effect for the rest of the region, with Hong Kong up 0.75 percent by the break, Sydney rising 1.55 percent and Shanghai adding 0.56 percent.

Seoul jumped 1.11 percent and Taipei gained 1.2 percent.

The Group of Seven said in a statement after the early morning talks in Tokyo: “We express our solidarity with the Japanese people in these difficult times, our readiness to provide any needed cooperation and our confidence in the resilience of the Japanese economy and financial sector.

“As we have long stated, excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will monitor exchange markets closely and will cooperate as appropriate.”

Dealers said Japan appeared to have already stepped into the market to sell the yen.

The Bank of Japan on Friday injected another three trillion yen ($37 billion) of emergency funds into the short-term money markets — the latest in a series of injections to prevent financial institutions running out of cash.

The central bank has now pumped a total of 37 trillion yen into the markets.

Global stocks have dived this week as the atomic crisis unfolds northeast of Tokyo, where authorities at the Fukushima No. 1 plant were trying to regain control after a series of blasts caused by the 9.0-magnitude quake and tsunami.

On oil markets crude jumped after the UN Security Council agreement to repel Kadhafi’s forces in Libya.

The decision, which opens the way for imminent bombing raids, stoked worries about supplies from the oil-rich country, where anti-government forces are fighting to bring down the four-decade rule of strongman Kadhafi.

New York’s main contract, light sweet crude for delivery in April rose $1.51 to $102.93 per barrel.

Brent North Sea crude for May delivery was up $1.10 to $116.00.

Gold opened at $1,407.00-$1,409.00 an ounce in Hong Kong, up from Thursday’s close of $1,396.20-$1,397.20.

In other markets:

– Manila closed 0.33 percent, or 12.50 points, higher at 3,829.88.

Energy Development rose 1.9 percent to 6.29 pesos, Philippine Long Distance Telephone added 1.2 percent to 2,038 but Aboitiz Power was off 2.2 percent at 28.60.

– Wellington rose 0.30 percent, or 9.92 points, to 3,339.51.

(Reuters) – Toronto’s main stock index looked set to open higher on Thursday, with rising oil prices likely to lift energy shares, offsetting investor fears that rising oil could derail global economic growth.

FACTORS TO WATCH

* Canadian equity futures pointed to a higher open.

* U.S. stock index futures fell, signaling another down day on Wall Street, as oil continued to rally on turmoil in Libya, denting investor sentiment.

* European shares extended this week’s losses as the lingering crisis in Libya sparked an $8-per-barrel jump in Brent crude, fanning further concern about its impact on inflation and growth.

* Major markets in Asia were in red, while China’s main stock index ended up as coal shares rose on expectations that surging oil price may lift demand for alternative energy sources.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index, a global commodities benchmark, rose 0.94 percent in early trade.

* Oil surged more than 7.5 percent to its highest since August 2008 on concern unrest in Libya could spread to other major oil producers in the Middle East, including Saudi Arabia.

* Gold steadied near seven-week highs, as investor fears over inflation stemming from the spike in crude oil were partially offset by pockets of profit-taking after the market’s 6 percent rise this month.

* Copper fell on concerns that higher oil prices driven by violence in the Middle East may slow economic growth and cripple demand for industrial metals, and as plentiful copper supply also weighed on prices.

CANADIAN STOCKS TO WATCH

* Canadian Imperial Bank of Commerce: Canada’s No. 5 bank said on Thursday that quarterly earnings rose a higher-than-expected 22.5 percent due to loan growth and lower provisions for credit losses.

* National Bank of Canada. The bank said on Thursday its first-quarter profit rose 45 percent, as stronger consumer and business loan growth more than offset a decline in trading income.

* Loblaw Cos Ltd.. Canada’s No. 1 grocer said on Thursday its quarterly profit fell as it invested more in information technology and food and drugstore sales dropped.

* Magna International Inc.: The world’s No.3 auto parts maker returned to a quarterly profit and hiked its dividend but earnings fell short of expectations on higher input costs and as losses deepened at its electric car unit.

* Yamana Gold: The miner said on Wednesday its profit rose sharply, as record gold prices in the fourth-quarter helped boost results.

* Inmet Mining: The miner said on Wednesday its fourth-quarter profit rose on the back of higher copper prices and strong results from its Las Cruces copper mine in Spain.

* SXC Health Solutions Corp.. The company posted a quarterly profit that fell below analysts’ estimates as expenses at its pharmacy benefits management segment rose, and forecast 2011 earnings below expectations.

* Pason Systems Inc: The company, which rents out oilfield instruments, on Wednesday reported a higher quarterly profit that missed market estimates, hurt by weakness at its international operations.

* Centerra Gold. The company’s fourth-quarter profit rose nearly 10 percent, as a higher gold price overshadowed the impact of lower output and higher costs.

* Imax Corp.. The big-screen movie company said on Thursday its fourth-quarter profit rose, driven largely by a growing network of big-screen Imax theaters across the globe.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Crew Energy Inc price target raised to C$20.75 from C$20.50; rating market perform at Raymond James

* Legacy Oil Plus Gas price target raised to C$20.50 from C$18.75; rating buy at Canaccord Genuity

* Terago Inc price target raised to C$11.50 from C$9 at Canaccord Genuity

* Alange Energy Corp price target cut to C$0.30 from C$0.35; rating market perform at Raymond James

* Canaco Resources Inc price target raised to C$7.25 from C$6.50; rating speculative buy at Canaccord Genuity

($1= $0.98 Canadian)

(Reporting by Shrutee Sarkar; editing by Jeffrey Hodgson)

NEW YORK (Reuters) – The creation of three times as many private-sector jobs as expected turned Wall Street’s early losses into gains on Wednesday, extending a rally investors worried had come too far too fast.

Financial stocks led gains, helped by credit-card companies such as Capital One Finance Corp (COF.N), which rose 4.2 percent to $45.52. The S&P consumer finance index (.GSPCFI), which includes major personal finance companies, gained 2.8 percent.

The jump in private payrolls to nearly triple the forecast, comes two days ahead of the government’s labor report. Economists boosted forecasts for Friday’s payroll growth.

“The economy is clearly accelerating,” said Edward Hemmelgarn, president of Shaker Investments in Cleveland. “It’s difficult to make the case for the market to go down in the first six months of the year.”

Trading volume has picked up sharply after the two-week holiday period, showing participation in the latest stage of the rally although many indicators are pointing to a market that may be reaching the top of its recent trading range.

The Dow Jones industrial average (.DJI) gained 31.71 points, or 0.27 percent, to 11,722.89. The Standard & Poor’s 500 Index (.SPX) rose 6.36 points, or 0.50 percent, to 1,276.56. The Nasdaq Composite Index (.IXIC) added 20.95 points, or 0.78 percent, to 2,702.20.

U.S. private employers added 297,000 jobs in December, a report by the ADP Employer Services showed, which was nearly three times what economists forecast and the biggest jump on record for ADP, which has data going back to 2000.

Employment agency Monster World Wide Inc (MWW.N) rose 3.6 percent to $25.03. The stock has surged more than 73 percent since the end of October after rising sharply ahead of the stronger-than-expected payrolls data for that month.

The encouraging data also lifted housing stocks. The PHLX housing index (.HGX) rose 1.8 percent, with homebuilder DR Horton Inc (DHI.N) among top gainers, up 3.2 percent to $12.40. Weakness in housing has been a major drag on the economy.

The S&P 500 ended 2010 up nearly 13 percent and recorded its best December since 1991, driven in part by encouraging economic data in the latter part of the year.

Technical indicators, such as the S&P 500 relative strength index, which measures higher and lower closing prices over a given period, suggest the market could be at the upper end of its short-term trading range.

The stronger data also helped put a floor under commodity prices that had weighed on the market earlier in the day. Industrial shares finished higher, with Caterpillar Inc (CAT.N) one of the best Dow performers, up 0.9 percent to $94.52.

Shares in the materials sector, however, remained weak, including aluminum company Alcoa Inc (AA.N) edging up 0.2 percent to $16.56.

“Following yesterday’s decline in commodities, investors are treading lightly in that part of the market today, unsure if there is a further correction in store,” said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

In other economic data, the Institute for Supply Management reported the vast U.S. services sector grew in December at its fastest pace in more than four years.

But the employment component of the report fell, differing with the ADP report’s trend and making some investors cautious.

The government’s jobs report on Friday is expected to show the economy created 175,000 non-farm jobs last month, according to a Reuters poll.

Among stock losers, Family Dollar Stores Inc (FDO.N) dropped 8.8 percent to $44.99 after the discount chain reported first-quarter earnings that missed expectations.

About 8.21 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, just below last year’s estimated daily average of 8.47 billion.

Advancing stocks outnumbered declining ones on the NYSE by about 3 to 2, while on the Nasdaq, five stocks rose for every two that fell.

(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

TOKYO – Asian stock markets rose modestly Wednesday after a $6.3 billion banking deal sent Wall Street to new two-year highs.

Trading was subdued ahead of Christmas holidays later this week, with most indexes fluctuating in a tight range.

Japan’s Nikkei 225 stock average was up 0.1 percent at 10,376.48.

Trading houses benefited from a report in the Nikkei financial daily saying Japanese trading companies plan to boost investments in Chinese startups. Mitsui & Co. rose 1.4 percent, and Mitsubishi Corp. added 1 percent.

Hong Kong’s Hang Seng index rose 0.5 percent to 23,113.1, South Korea’s Kospi advanced 0.2 percent to 2,040.59, and Australia’s S&P/ASX 200 was up 0.1 percent at 4,775.4.

Benchmarks in Taiwan, New Zealand and Singapore also advanced, while the Shanghai Composite index fell slightly.

Among big movers, Sanyo Electric Co. shed 3.7 percent and Panasonic Electric Works Co. tumbled 4.1 percent in Tokyo. Investors moved to sell after Panasonic Corp. announced details of a share swap plan to make both companies wholly-owned subsidiaries. Panasonic said it would offer 0.115 of its own shares for one Sanyo share and 0.925 Panasonic share for one Panasonic Electric Works share.

In Seoul, technology blue chips advanced, with Samsung Electronics Co. up 1.3 percent and rival LG Electronics Inc. gaining 0.4 percent.

In New York Tuesday, a big banking deal raised hopes that more acquisitions could be on the way. Toronto-Dominion Bank said it is buying Chrysler Financial, the automaker’s old lending arm, from Cerberus Capital Management LP for $6.3 billion.

The Dow Jones industrial average rose 55.03, or 0.5 percent, to close at 11,533.16 — the highest level since Aug. 29, 2008.

The broader S&P 500 index rose 7.52, or 0.6 percent, to close at 1,254.60, while the Nasdaq composite rose 18.05, or 0.7 percent, to 2,667.61.

In currencies, the dollar was little changed at 83.78 yen. The euro rose to $1.3131 from $1.3101 late Tuesday.

Benchmark oil for February delivery rose 11 cents to $89.93 in electronic trading on the New York Mercantile Exchange. The contract rose 45 cents to settle at $89.82 on Tuesday.

Japanese financial markets will be closed Thursday for the emperor’s birthday, a national holiday.

BANGKOK – World stock markets climbed and the dollar sank Thursday after the Federal Reserve said it will buy $600 billion in government bonds in a new attempt to jump-start the faltering U.S. economy.

Oil prices approached $86 a barrel and metal prices also rose after the U.S. central bank outlined its plan, known as quantative easing, that will involve buying $75 billion in Treasury bonds per month until the middle of next year.

The forced increase in the supply of dollars is likely to add to the U.S. currency’s weakness and it fell Thursday against the euro and the yen. The Australian dollar, meanwhile, was firmly above $1 after flirting with that level several times in the past few weeks.

The Fed’s announcement was good news for stocks because the increased demand for Treasurys created by the Fed’s purchases is expected to push up bond prices and drag down interest rates, making returns on stocks more attractive. It also boosted commodities because most are traded in dollars and a weaker dollar makes them more attractive to buyers using foreign currencies.

But there are doubts about whether the Fed’s move will achieve its main objective of stimulating lending and spending — seen as key to creating jobs and resuscitating the U.S. housing market.

It was smaller than what Fed policymakers called their “shock and awe” approach to the 2008 financial crisis, when the Fed bought $1.7 trillion of securities to lower long-term interest rates.

Some analysts warned that continued weakness in the U.S. dollar will add to global currency tensions that could lead to increased trade barriers, making the gains in stock markets a false indicator of confidence.

“I have to point out that it’s not a healthy rise, but was simply due to the weakening U.S. dollar. The second phase of the Federal Reserve’s so-called economic stimulus plan will force global currencies to fall again, which certainly raises the curtain on a war of world currencies,” said Liu Kan, an analyst at Guoyuan Securities in Shanghai.

European stocks posted big gains in early trading. Britain’s FTSE 100 advanced 1.6 percent to 5,839.89 and Germany’s DAX climbed 1.2 percent to 6,698.12. France’s CAC-40 surged 2.1 percent to 3,921.82.

Wall Street was set for modest gains. Dow futures added 31 points, or 0.3 percent, to 11,208.00 and broader S&P futures rose 3.5, or 0.3 percent, to 1,200.90.

In Asia, Japan’s benchmark Nikkei 225 stock index jumped 2.2 percent to 9,358.78 after being closed for a holiday Wednesday and despite pressure on exporters as the dollar fell below the 81 yen level.

South Korea’s Kospi rose 0.3 percent to 1,942.50 — close to a three-year closing high — and Australia’s S&P/ASX 200 gained 0.5 percent to 4,745.30.

Hong Kong’s Hang Seng index climbed 1.6 percent to 24,535.63 and China’s Shanghai Composite Index closed up 1.9 percent at a seven-month high of 3,086.94.

Elsewhere, markets in Malaysia, India, Singapore and Taiwan advanced while New Zealand’s index fell.

In New York on Wednesday, the Dow Jones industrial average rose 26.41 points, or 0.2 percent, to 11,215.13, the highest close in two years after the Fed outlined its bond buying plan.

The Fed’s announcement came after American voters frustrated by persistently high unemployment and the limp housing market handed control of the House to Republicans and gave the party a bigger voice in the Senate.

The split will probably make it harder for President Barack Obama to enact any major economic initiatives and could put more pressure on the Fed to get the wobbly economy back on firmer footing.

In currencies, the dollar fell to 80.96 yen from 81.05 yen in New York late Wednesday. The euro rose to $1.4199 from $1.4122.

Benchmark crude for December delivery was up $1.13 at $85.82 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 79 cents to settle at $84.62 a barrel Wednesday.

___

AP researcher Ji Chen in Shanghai contributed to this report.

TOKYO – Asian markets were mostly lower Monday but Japanese shares gained as Google’s earnings boosted technology stocks.

Japan’s Nikkei 225 stock average rose 0.5 percent to 9,548.02 and China’s Shanghai Composite Index also rose, gaining 1 percent to 3,000.70. But most other indexes fell.

Hong Kong’s Hang Seng dropped 0.7 percent to 23,586.12 and South Korea’s Kospi slid 1.1 percent to 1,882.41. Australia’s S&P/ASX 200 was off 0.9 percent at 4,648.30. Markets in Singapore, Taiwan, Indonesia and Malaysia were also lower.

In Tokyo trade, technology stocks were cheered by solid numbers from Google Inc. Its stock soared 11 percent after reporting that third quarter net income jumped 32 percent.

Electronics and entertainment giant Sony Corp. rose 1.7 percent, and Panasonic Corp. added 1 percent.

Decliners included Mazda Motor Corp., which fell 0.5 percent after the Nikkei financial daily reported Saturday that Ford Motor co. plans to reduce its 11 percent stake in the Japanese automaker.

Australian miners Rio Tinto Ltd. and BHP Billiton Ltd. were weak after scrapping plans for a $120 billion iron ore joint venture in the remote Outback after antitrust regulators in Australia, Europe and Asia opposed it or demanded changes. The cancellation on Monday of the joint venture proposed in the Pilbara region of Western Australia state came as little surprise to markets, because problems with some regulators were already well known.

BHP Billiton Ltd. fell 1.2 percent, and Rio Tinto Ltd. was down 0.6 percent.

On Wall Street, the Dow Jones industrial average finished Friday down 0.3 percent at 11,062.78. The broader Standard & Poor’s 500 index rose 0.2 percent to 1,176.19. The tech-heavy Nasdaq jumped 1.4 percent to 2,468.77

In currencies, the dollar slipped to 81.35 yen from 81.43 yen late Friday. The euro fell to $1.3885 from $1.3977.

Benchmark crude for November delivery was down 46 cents at $80.77 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost $1.44 to settle at $81.25 on Friday.

SINGAPORE (Reuters) – Asian stocks rose on Friday as stronger-than expected economic indicators from China and the United States boosted confidence in the global economic recovery.

European shares also rose, after slipping in the previous four sessions amid debt concerns in the euro zone. The FTSEurofirst 300 (.FTEU3) rose 0.2 percent, Britain’s FTSE 100 (.FTSE) gained 0.6 percent, Germany’s DAX rose 0.4 percent and France’s CAC 40 (.FCHI) was up 0.3 percent. (.L) (.EU)

Chinese manufacturing gathered momentum last month, handily beating market forecasts and providing further evidence that the economy is pulling smoothly out of a second-quarter slowdown.

The MSCI index of Asia Pacific stocks outside Japan (.MIAPJ0000PUS) was up 0.34 percent compared with a rise of 0.24 before the release of China’s Purchasing Managers Index. The index gained more than 17 percent in the last quarter.

“This looks like the real deal. It’s not just inventory correction. We think that end demand is picking up in China and the economy has stabilized after the summer lull,” said Frederick Neuman, co-head Asian economics, HSBC in Hong Kong.

Japan’s Nikkei (.N225) average closed up 0.37 percent on Friday, helped by short-covering after sharp falls the previous day and after U.S. economic data provided a degree of optimism.

The index gained 6.2 percent in September, it is more than 2 percent off the peak hit after Japanese authorities conducted currency market intervention on September 15 to weaken the yen. (.T)

“Japanese stocks are recouping some ground as investors appear to be correcting extreme pessimism triggered yesterday by the yen’s advance and worries about European finance problems,” said Koichi Nosaka, a market analyst at Securities Japan Inc.

DATA WATCH

U.S. data on Thursday showed new jobless benefits fell last week and regional manufacturing grew faster than expected.

Later on Friday, the Institute for Supply Management is scheduled to release U.S. manufacturing data.

U.S. Treasury prices slipped as investors turned to stocks and the dollar held steady after dropping to an eight-month low against a basket of currencies the previous day.

The euro paused below a five-month high on the dollar hit the previous day, helped by data showing euro zone banks are relying less on funds from the European Central bank.

The dollar dipped 0.1 percent to 83.47 yen, but stayed above the previous day’s low at 83.16 yen and last month’s 15-year trough below 83.00 that had prompted Japanese authorities to intervene for the first time in six years.

The Australian dollar jumped on optimism that the strong data from China augured well for the country’s resource exports.

Oil rose above $80 on Friday, staying at a seven-week high, as the renewed momentum in China’s manufacturing sector pointed to stronger demand. Copper also advanced on hopes of greater Chinese demand.

But gold, widely seen as a safe haven, also ticked up, hovering within sight of a lifetime high, although traders said the improving data from China and the U.S. could curb gains.

Traders said spot gold, which stood at $1,310.40 an ounce after hitting a record around $1,315 the previous day, remained volatile as investors watched for signs of a firmer U.S. recovery.

“I guess speculation will still be rife as to the state of the U.S. economy. The need or not for a QE2 (second round of quantitative easing) from the Fed,” said Darren Heathcote, head of trading at Investec Australia in Sydney.

(Additional reporting by Charlotte Cooper and Aiko Hayashi in TOKYO; Editing by Alex Richardson)