LONDON – Stocks spiked sharply higher on Friday after forecast-busting U.S. jobs figures reinforced hopes that the recovery in the world’s largest economy is gathering pace at a time when other regions, notably Europe, may be heading back into recession.

Figures from the Labor Department showed that employers in the U.S. added 243,000 jobs in January. As well as being the highest in nine months, the gain was around 100,000 more than anticipated.

The advance also contributed to a fifth straight fall in the U.S. unemployment rate. At 8.3 percent, it’s the lowest in three years.

The January jobs report was filled with other encouraging data and revisions. Hiring was widespread across many high-paying industries and pay increased, too.

“In terms of the broader outlook, one report does not a trend make but there is little doubt that U.S. economic data continues to surprise on the upside,” said Dan Greenhaus, chief global strategist at BTIG.

“We’ll have to wait until February’s report to see if this continues but for now, the risk rally is clearly on and from an economic perspective, it is most certainly warranted,” Greenhaus added.

In Europe, the FTSE 100 index of leading British shares was up 1.4 percent at 5,875 while Germany’s DAX rose 1.3 percent to 6,743. The CAC-40 in France was 0.8 percent higher at 3,405.

In the U.S., the Dow Jones industrial average was up 0.9 percent at 12,819 while the broader Standard & Poor’s 500 index rose 1 percent to 1,338.

The dollar also garnered some strength from the jobs figures as traders scaled back their expectations that the Federal Reserve would be pumping more money into the economy, evidenced also by a fall in Treasuries. The euro was trading 0.3 percent lower at $1.3097 while the dollar was 0.6 percent higher at 76.61 yen.

Andrew Wilkinson, chief economic strategist at Miller Tabak & Co., said the Fed would need more evidence before it is comfortable about the durability of the U.S. recovery, especially with the housing market still in a fragile state.

“It will take a series of repeat reports like today’s to deliver meaningful improvements to the unemployment rate before the Fed will feel confident that any improvement in employment prospects will replace the need for it to massage yields lower,” Wilkinson said.

Market sentiment has been fairly upbeat so far in 2012, partly on the back of a run of fairly strong U.S. economic data, which has convinced investors that the U.S. economy is over its soft patch from last summer.

The state of the U.S. economy contrasts with that of Europe, which appears headed for recession.

Official figures showed retail sales in the 17-nation eurozone dropped 0.4 percent during December, in contrast to expectations for an increase of the same amount.The data reinforced expectations that the eurozone contracted during the fourth quarter of the year. Eurostat is due to publish its first estimate for the quarter on Feb. 15.

The focus on the U.S. has proved a welcome diversion for some traders from monitoring the daily grind of Europe’s debt crisis, where much hinges on whether Greece can secure a deal with its private creditors, as is anticipated. A deal is expected soon, though that has been the official line for a few weeks.

Earlier in Asia, the picture was mixed.

Japan’s Nikkei 225 index fell 0.5 percent to close at 8,831.93 but Hong Kong’s Hang Seng ended marginally higher at 20,756.98.

Mainland Chinese shares extended gains fueled by news of fresh support for the farming and small-business sectors, with the benchmark Shanghai Composite Index rising 0.8 percent to 2,330.41 while the Shenzhen Composite Index added 1.5 percent to 878.29.

Oil markets were relatively subdued. Benchmark oil for March delivery was up 39 cents at $96.75 per barrel in electronic trading on the New York Mercantile Exchange.

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Pamela Sampson in Bangkok contributed to this report.

NEW YORK (Reuters) – Stock index futures pointed to a sharply higher open on Friday after the government reported the U.S. economy created jobs at the fastest pace in nine months, infusing optimism into markets.

Nonfarm payrolls jumped by 243,000 in January, the Labor Department said, the most since April and far exceeding economists' expectations for a gain of 150,000. The unemployment rate dropped to a near three-year low of 8.3 percent.

"All I can say is 'wow,'" said Matt McCormick, a money manager at Cincinnati-based Bahl & Gaynor Inc. "This is the kind of number people wouldn't have believed until we saw it."

S&P 500 futures jumped 12 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 109 points, and Nasdaq 100 futures rose 23.25 points.

Recent data suggesting a slow but steady economic recovery have helped fuel a rally in stocks, with the S&P 500 up 5.4 percent so far this year and over 23 percent since lows in October. Many analysts had worried that a weak report could spark a pullback.

Tyson Foods Inc (TSN.N) rose 3.4 percent to $19.26 in premarket trading after quarterly earnings beat expectations.

Aon Corp (AON.N) also reported a higher-than-expected profit that narrowly beat estimates. Shares edged 0.5 percent higher to $49.60.

Earnings this season have been mixed, with fewer companies beating expectations than in recent quarters. However many technology names, including Qualcomm Inc (QCOM.O) and Apple Inc (AAPL.O), have posted blowout quarters.

In other economic news, December factory orders are seen rising 1.5 percent, while the Institute for Supply Management's January non-manufacturing index is expected to come in at 53.0, a repeat of the revised December number. Both reports are due at 10 a.m. EST.

Investors largely took a wait-and-see approach on Thursday as U.S. stocks ended little changed ahead of the payrolls report.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

LONDON – Optimism over upcoming U.S. jobs figures helped stocks and the euro to rally on Friday despite further evidence that the 17-nation eurozone is heading for recession.

Following a run of fairly strong U.S. economic data, investors are increasingly confident that the world’s largest economy is over a soft patch from last summer, helping to offset the global economic impact wrought by Europe’s ongoing debt crisis.

Figures released Friday provided further evidence that the eurozone is heading for a recession. Eurostat, the EU’s statistics office, said retail sales dropped 0.4 percent during the month, in contrast to expectations for an increase of the same amount.

The December data reinforced expectations that the eurozone contracted during the fourth quarter of the year. Eurostat is due to publish its first estimate for the quarter on Feb. 15.

The highlight of the day in the markets will be the monthly U.S. nonfarm payrolls data. Expectations are that the U.S. economy generated around 150,000 jobs during January. Though that is unspectacular for an economy recovering from its worst recession since World War II, the amount of jobs being created is up from levels seen just a few months ago.

“Volatility is likely to remain low until these figures are out, with traders opting to sit and await news rather than heavily commit themselves,” said David Jones, chief market strategist at IG Index.

In Europe, the FTSE 100 index of leading British shares was up 0.5 percent at 5,823 while Germany’s DAX rose 0.4 percent to 6,682. The CAC-40 in France was 0.5 percent higher at 3,394.

Wall Street was also poised for a solid opening, though how it actually performs will hinge on the payrolls data, which are released an hour before the bell. Dow futures and the S&P 500 futures were both up 0.2 percent.

The euro was also garnering support alongside stocks — when appetite for risk is elevated, the euro often finds favour. It was trading 0.3 percent higher at $1.3177 despite the retail sales disappointment.

The focus on the U.S. has proved a welcome diversion for some traders from monitoring the daily grind of Europe’s debt crisis, where much hinges on whether Greece can secure a deal with its private creditors, as is anticipated. A deal is expected soon, though that has been the official line for a few weeks.

Earlier in Asia, the picture was mixed.

Japan’s Nikkei 225 index fell 0.5 percent to close at 8,831.93 but Hong Kong’s Hang Seng ended marginally higher at 20,756.98.

Mainland Chinese shares extended gains fueled by news of fresh support for the farming and small-business sectors, with the benchmark Shanghai Composite Index rising 0.8 percent to 2,330.41 while the Shenzhen Composite Index added 1.5 percent to 878.29.

Oil markets were also relatively subdued. Benchmark oil for March delivery was up 40 cents to $96.76 per barrel in electronic trading on the New York Mercantile Exchange.

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Pamela Sampson in Bangkok contributed to this report.

Investors coasted Thursday while they waited for a critical government report on jobs. Stocks were mostly flat, a pause from their strong start this year, and bonds didn’t move much, either.

The Labor Department said the four-week average of unemployment claims fell to 375,750, the lowest since June 2008 and enough to suggest a steadily improving job market.

The more important numbers come Friday, when the government releases the number of jobs created in January and the unemployment rate. In December, the country added 200,000 jobs, and the rate was 8.5 percent.

A day ahead of the report, the Dow Jones industrial average was down 10 points at 12,707. The broader Standard & Poor’s 500 index rose one point to 1,325. The Nasdaq composite rose 10 points to 2,858.

The Dow traded in a narrow range — between a gain of 25 points and a loss of 40.

Bond traders stayed on the sidelines, too. The price of the benchmark 10-year Treasury note rose 6.2 cents for every $100 invested, and the yield inched down to 1.82 percent from 1.83 percent Wednesday.

Most industries in the stock market rose, albeit slightly. A 0.6 percent gain was all it took to make energy stocks the biggest-gaining category in the S&P.

U.S. mining stocks rose after British mining company Xstrata PLC confirmed it is in merger discussions with commodities trader Glencore International PLC. In the U.S., Newmont Mining Corp. rose 1.5 percent, Alcoa was up 2 percent, and iron ore and coal miner Cliffs Natural Resources Inc. rose 1 percent.

The deal is a signal to investors that mining companies are trading at low prices compared with the commodities they mine, said Nathan Rowader, director of investments at Forward Management in San Francisco.

Health care stocks fell almost 1 percent. Cigna dropped 4 percent after its earnings fell short of expectations as it absorbed higher corporate and medical costs. Pfizer fell 1.1 percent after recalling birth-control pills.

Retailers were a patchwork of rising and falling stock, reflecting their patchwork of January sales results. Costco and Target came in better than expected. Macy’s and Dillard’s fell short. Costco rose 2.5 percent, and Target rose 0.6 percent.

Gap rose 10 percent after revenue at its high-end Banana Republic stores rose 6 percent.

Abercrombie & Fitch Co. fell 11 percent to a one-year low after it said higher markdowns and cotton costs mean its adjusted fourth-quarter profit and revenue will be less than analysts had expected.

Last year, investors were so worried about a financial disaster in Europe that U.S. companies with strong earnings have been undervalued, said Tim Courtney, chief investment officer of Burns Advisory Group in Oklahoma City.

Now, he said, stock prices are catching up. The S&P is up 5.4 percent this year, the Dow 4 percent.

“Right now the market is going up just on the absence of bad news, on the absence of that worst-case scenario materializing,” he said.

Stocks in Europe closed nearly flat or up slightly. Britain’s FTSE 100 index rose 0.1 percent. Germany’s DAX was 0.6 percent higher, and the CAC-40 in France rose 0.3 percent.

The euro was also subdued after recent gains, trading slightly lower at $1.315.

In other corporate news:

• Green Mountain Coffee Roasters Inc., which makes Keurig cup coffee brewers, rose a hot 22 percent after it said first-quarter revenue more than doubled, margins tripled, and net income rose more than 40-fold.

• MasterCard rose almost 6 percent after adjusted profits beat Wall Street expectations.

NEW YORK (Reuters) – U.S. stocks seesawed in a tight range on Thursday, with winners and losers taking their cues from earnings reports, while a drop in jobless claims continued to point to a slowly healing labor market.

Healthcare shares were among the losers, with underwhelming quarterly reports from drugmaker Merck & Co Inc (MRK.N), insurer Cigna Corp (CI.N) and medical device maker Boston Scientific Corp (BSX.N). Merck fell 1.3 percent to $38.14, Cigna dropped 5.7 percent to $43.10 and Boston Scientific was off 7 percent to $5.67.

The S&P healthcare sector (.GSPA) fell nearly 1 percent and was the largest weight on the benchmark S&P 500 index.

Technology shares continued to outperform the broader market, with Qualcomm Inc (QCOM.O) hitting its highest level in 12 years after first-quarter profit trounced estimates. Shares gained 2.1 percent to $60.84 after hitting a high of $61.95.

MasterCard Inc (MA.N) rose near 5.6 percent to $377.84 after the payment processor beat analysts' estimates for the seventh straight quarter.

Investor sentiment was helped as the economy, on an uptrend of late, got another boost as new claims for jobless benefits dropped more than expected in the latest week. The government will report monthly payrolls data Friday.

"Investors are focusing on what they should, which is the improving backdrop in the U.S. economy," said Bruce Zaro, chief technical strategist, Delta Global Asset Management in Boston.

The Dow Jones industrial average (.DJI) was down 33.45 points, or 0.26 percent, at 12,683.01. The Standard & Poor's 500 Index (.SPX) was down 1.07 points, or 0.08 percent, at 1,323.02. The Nasdaq Composite Index (.IXIC) was up 4.50 points, or 0.16 percent, at 2,852.77.

Zaro expects the current uptrend for the S&P 500 to take it to 1,370 in the first half of the year, but the index could pull back before then at around the 1,330 level.

Green Mountain Coffee Roasters Inc (GMCR.O) soared 22.1 percent to $65.45 a day after its first-quarter earnings far exceeded expectations.

The third warmest January in 50 years hurt same-store sales at department stores and apparel retailers. But discounters such as Target and Costco as well as high-end stores beat estimates.

Target Corp (TGT.N) rose 1 percent to $51.94 while Abercrombie & Fitch Co (ANF.N) slumped 11.6 percent to $41.39, and Costco Wholesale Corp (COST.O) was up 2.2 percent at $85.02.

Facebook could raise as much as $10 billion in the biggest-ever Internet initial public offering, according to a filing Wednesday. In 2011, Facebook said net income rose 65 percent to $1 billion on revenue of $3.71 billion.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

LONDON – Markets took a breather on Thursday, following solid gains in the previous session, as investors positioned themselves for crucial U.S. jobs data that often set the tone for a week or two after their release.

A recent run of solid U.S. economic news has reinforced hopes that Friday’s nonfarm payrolls data will provide further evidence that the world’s largest economy is over its soft patch from last summer.

The consensus in the markets is that the U.S. economy generated around 170,000 jobs during January. Though that is unspectacular for an economy recovering from its worst recession since World War II, the amount of jobs being created is up from levels seen just a few months ago.

The pick-up in the U.S. economic data, in general, has also helped support market sentiment at a time when there is a huge amount of uncertainty relating to Europe’s debt crisis, despite more successful bond auctions Thursday from France and Spain.

“The fact that the U.S. is growing has been another source of relief,” said Jane Foley, an analyst at Rabobank International. “A disappointing number tomorrow could spark a retrenchment in appetite for risk.”

Weekly jobless claims figures later will be watched in the context of Friday’s report for the month of January.

Ahead of that, markets were subdued, though a raft of earnings in Europe have helped maintain trading activity, as has confirmation that mining company Xstrata PLC is in merger discussions with commodities trader Glencore International PLC. A deal would create a company with revenues of around $175 billion and the news has helped both share prices rally in London.

Despite the Xstrata and Glencore’s gains — of 10 percent and 5 percent — Britain’s FTSE 100 index of leading shares was down 0.2 percent at 5,781. Germany’s DAX was 0.1 percent higher at 6,623 and the CAC-40 in France was flat at 3,366.

The euro was also subdued after recent gains, trading 0.2 percent lower at $1.3146.

Wall Street was poised for a flat opening, too — Dow futures were up 0.1 percent at 12,662 while the broader Standard & Poor’s 500 futures were flat at 1,320.

The focus on the U.S. over the rest of the week will have proved a welcome diversion for some traders from monitoring the daily grind of Europe’s debt crisis, where much hinges on whether Greece can secure a deal with its private creditors, as is anticipated.

A deal is expected in a matter of days, according to officials, though that has been the official line for a few weeks.

“Given that it’s Groundhog Day today its particularly apt that Greece continues to be the centre of continued speculation about what’s happening with respect to the debt talks and the latest bailout,” said Michael Hewson, markets analyst at CMC Markets.

“Even so markets are now so bored with it, any comments by EU officials are now being dismissed with a perfunctory shrug and an ‘I’ll believe it when I see it’ attitude,” Hewson added.

Earlier in Asia, Tokyo’s Nikkei 225 rose 0.8 percent to 8,876.82 while Hong Kong’s Hang Seng shot up 2 percent to 20,739.45 and Seoul’s Kospi added 1.3 percent to 1,984.30.

China’s benchmark Shanghai Composite Index climbed 2 percent to 2,312.56 on Thursday amid signs manufacturing improved in January for a second straight month.

Oil prices were subdued alongside other markets — benchmark oil for March delivery fell 51 cents to $97.10 per barrel Thursday in electronic trading on the New York Mercantile Exchange.

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Alex Kennedy in Singapore contributed to this report.

NEW YORK (Reuters) – Stocks extended January's rally, climbing more than 1 percent, on Wednesday after upbeat global manufacturing data and as Greece neared a long-delayed deal on its debt.

An index of the U.S. manufacturing sector rose in January to its highest level since June, an industry group said, while China's factory sector expanded slightly, confounding expectations for a contraction. Germany recorded its first rise in manufacturing output in four months.

"Manufacturing numbers are what the market is jumping on," said John Manley, chief equity strategist at Wells Fargo Funds Management in New York.

Stocks also got a boost after Greek Finance Minister Evangelos Venizelos said talks between Athens and its private creditors were "one formal step away" from a deal needed to avoid a messy default.

U.S. and European banks rallied on the news. Bank of America (BAC.N) gained 3.6 percent to $7.39 and Citigroup (C.N) rose 3.8 percent to $31.88.

Homebuilder shares advanced after U.S. data showed construction spending surged in December to its highest level in more than 1-1/2 years. An index of housing stocks (.HGX) rose 1.5 percent.

The Dow Jones industrial average (.DJI) rose 138.65 points, or 1.10 percent, to 12,771.56. The S&P 500 Index (.SPX) gained 14.33 points, or 1.09 percent, to 1,326.74. The Nasdaq Composite (.IXIC) added 32.03 points, or 1.14 percent, to 2,845.87.

After the S&P 500 rose 4.4 percent last month, some traders see the benchmark index near a short-term top. Wells Fargo's Manley said the index is "near the upper end of a trading band," with a top below 1,350.

"I'd rather own stocks than not, but on a year horizon," he said, indicating stocks could pull back in the near term.

Amazon (AMZN.O) slid 9.1 percent to $176.61 a day after the online retailer warned of a possible first-quarter loss and posted a steep drop in fourth-quarter profit.

According to Thomson Reuters data, with 228 companies having

reported results, 61 percent have beaten expectations – below the 70 percent beat rate of recent quarters.

Whirlpool (WHR.N) surged 15.6 percent to $62.80 after giving an optimistic full-year outlook.

Facebook was expected to submit paperwork to regulators for a $5 billion initial public offering and selected Morgan Stanley (MS.N) and four other bookrunners to handle the IPO, sources told Reuters unit IFR.

Morgan Stanley shares gained 5.1 percent to $19.60.

(Reporting by Rodrigo Campos; editing by Kenneth Barry)

U.S. stocks rose on Wednesday after solid manufacturing data from around the world.

Investors have been hoping that positive manufacturing data for China and Europe mean similar growth is happening in the U.S.

That view was bolstered as the Institute for Supply Management’s manufacturing index indicated U.S. factories grew in January at the fastest pace in seven months, boosted by a rise in new orders. The trade group of purchasing managers said its manufacturing index rose last month to 54.1 from 53.1 in December. Readings above 50 indicate expansion.

In the first hour of trading, the Dow Jones industrial average rose 103 points, or 0.8 percent, to 12,736. The broader Standard & Poor’s 500 index rose 10 points, or 0.8 percent, to 1,322. The Nasdaq composite rose 14 points, or 0.5 percent, to 2,828.

Monthly hiring figures from private payroll agency ADP were so-so. ADP said private-sector employment rose by 170,000 from December to January. That was 10,000 fewer jobs than expected by analysts surveyed by FactSet. ADP also said November-to-December job growth was smaller than it previously thought — 292,000 instead of the initially reported 325,000.

Also Wednesday, Ford and Chrysler reported U.S. sales growth for January while General Motors Co. said its sales fell 6 percent. Ford Motor Co. said sales rose 7 percent on strong demand for small cars and SUVs. Chrysler’s January sales in the U.S. jumped 44 percent.

Figures released before U.S. markets opened showed that China’s manufacturing sector is growing steadily and Europe’s is performing better than forecast. That gave investors hope that U.S. manufacturing is headed the same direction as the world’s largest economy continues its recovery.

The focus on the U.S. will prove a welcome diversion for some traders from monitoring the daily developments in Europe’s debt crisis. There are signs that the crisis has eased, for now. EU leaders agreed this week to push ahead with a closer fiscal union and borrowing rates for Italy and Spain are down sharply from just a couple of months ago, suggesting increased investor confidence.

Much hinges on Greece, where the outlook also appeared brighter. Hopes were growing that a debt-reduction deal between the country and its private creditors will be concluded soon, alongside a second bailout from the eurozone and the International Monetary Fund.

In Europe, the FTSE 100 index of leading British shares was up 1.4 percent at 5,761 while Germany’s DAX rose 2 percent to 6,592. The CAC-40 in France was 1.5 percent higher at 3,348.

The sense of an easing in Europe’s debt woes helped stocks enjoy a stellar start to the year, with many markets recovering a large chunk of their late-2011 losses. Overall, U.S. shares had their best January in 15 years.

Earlier in Asia, stock markets lacked the same momentum seen in Europe.

Tokyo’s Nikkei 225 edged up less than 0.1 percent to close at 8,809.79 but Hong Kong’s Hang Seng ended down 0.3 percent to 20,333.37. Mainland China’s main index in Shanghai also fell 1.2 percent to 2,268.08.

The improved mood over the global economy helped oil prices track higher — benchmark oil for March delivery gained 53 cents to $99 per barrel in electronic trading on the New York Mercantile Exchange.

SHANGHAI – Asian stocks mixed Wednesday, as a modest improvement in manufacturing data from China offered reassurance over its economic slowdown.

Benchmark oil hovered below $99 per barrel while the dollar rose against the euro and was steady against the yen.

A better-than-expected manufacturing index for January, issued by a government federation, fueled an early rally in most markets across the region. But much of the advance was lost after the later release of a competing, seasonally adjusted survey by HSBC that indicated conditions were still deteriorating.

Tokyo’s Nikkei 225 edged up less than 0.1 percent to close at 8,809.79. Hong Kong’s Hang Seng was down 0.4 percent to 20,314.21 while Seoul’s Kospi added 0.2 percent to 1,959.24.

By afternoon, shares in mainland China had retreated back into negative territory, with the benchmark Shanghai Composite Index shedding 1.2 percent to 2,265.49.

An unexpected drop in U.S. consumer confidence dragged stocks down overnight on Wall Street, where the Dow Jones industrial average lost 20.81 points, or 0.2 percent, to 12,632.91. The S&P slipped 0.60 point to 1,312.41 while the Nasdaq composite index rose 1.90 points to close at 2,813.84.

Overall, though, U.S. shares had their best start in 15 years, thanks to a modest improvement in the economy. Sentiment was further buoyed by hopes of progress in Europe after leaders there agreed on the broad outlines of a deal to tie the countries that use the euro closer together and on hopes that Greece is close to a debt-reduction deal with private creditors.

Yet, the mixed signals from China compounded uncertainties still weighing on investor confidence. That is true especially for Australia, whose economy depends heavily on Chinese demand for its coal and other commodities.

Australia’s S&P/ASX 200 fell 0.9 percent to 4,225.70 while India’s Sensex dropped 0.7 percent to 17,079.29.

Singapore shares also were lower, while Taiwan, Indonesia and New Zealand gained ground.

Benchmark oil for March delivery gained 15 cents to $98.63 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 30 cents to end at $98.48 per barrel in New York on Tuesday.

In currencies, the euro fell to $1.3038 from $1.3084 late Tuesday in New York. The dollar was nearly unchanged at 76.21 yen.

SHANGHAI – Asian stocks were mostly higher Wednesday despite a lackluster day on Wall Street, as improved manufacturing data from China offered reassurance over its economic slowdown.

Tokyo’s Nikkei 225 rose 0.3 percent to 8,826.79, helped by news of rebounding industrial production and household spending. Hong Kong’s Hang Seng gained 0.2 percent to 20,424.24 and Seoul’s Kospi added 0.3 percent, to 1,961.77.

An unexpected drop in U.S. consumer confidence dragged stocks down on Wall Street, where the Dow Jones industrial average finished down 20.81 points, or 0.2 percent, at 12,632.91. The S&P slipped 0.60 point to 1,312.41 while the Nasdaq composite index rose 1.90 points to close at 2,813.84.

But overall the U.S. markets had their best start for stocks in 15 years, thanks to a modest improvement in the economy. Sentiment was further buoyed by hopes of progress in Europe after leaders there agreed on the broad outlines of a deal to tie the countries that use the euro closer together and on hopes that Greece is close to a debt-reduction deal with private creditors.

China’s benchmark Shanghai Composite Index climbed 0.1 percent to 2,294.67 following the release of a key manufacturing index that showed conditions improving in January for a second straight month, though only by a modest margin.

Peng Yunliang, an analyst based in Shanghai, said strong demand for food and beverages kept manufacturing demand better than expected.

“I expect the market will keep on rising in the short term,” he said.

Shares in Singapore and Australia weakened, while Taiwan, Indonesia and New Zealand gained ground.

European markets rebounded Tuesday amid hopes for progress on handling Greece’s debt. Under a tentative agreement, investors holding 206 billion euros ($272 billion) in Greek bonds would exchange them for bonds with half the face value. The replacement bonds would have a longer maturity and pay a lower interest rate. When the bonds mature, Greece would have to pay its bondholders only 103 billion euros.

France’s CAC-40 gained 1 percent while Britain’s FTSE 100 and Germany’s DAX both gained 0.2 percent.

Benchmark oil for March delivery gained 31 cents to $98.79 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 30 cents to end at $98.48 per barrel in New York on Tuesday.

In currencies, the euro fell to $1.3064 from $1.3084 late Tuesday in New York. The dollar fell to 76.15 yen from 76.20 yen.