NEW YORK (Reuters) – Wall Street stocks rose on Thursday on the latest signs of an improving U.S. economy and optimism a Greek bailout deal would be agreed next week.

Equity indexes continued to trade in tight ranges, with the S&P 500 near a nine-month high.

U.S. labor, manufacturing and housing data suggested sustained momentum in the key economic sectors and confirmed the recovery continues at steady pace.

"We're getting this incredible flow of good data," said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis. "It's hard not to want to step into the market."

The euro zone is putting the finishing touches to a second bailout deal for Athens that could be approved on Monday, officials said, moving closer to averting a disorderly default by Greece.

"People are increasingly of the opinion that although Europe will continue to have flare-ups, it's not likely to become a calamity for the world economy,' Paulsen said.

The Dow Jones industrial average (.DJI) added 109.13 points, or 0.85 percent, to 12,890.08. The S&P 500 Index (.INX) gained 10.52 points, or 0.78 percent, to 1,353.75. The Nasdaq Composite (.IXIC) rose 26.00 points, or 0.89 percent, to 2,941.83.

Bank shares rose, brushing off a warning from Moody's about possible downgrades to the credit ratings of 17 global and 114 European financial institutions.

Among the ratings threatened were those of Goldman Sachs (GS.N), up 1.2 percent at $114.50, and Bank of America (BAC.N), up 2.8 percent at $8.

The KBW bank index (.BKX) rose 1.7 percent.

Apple (AAPL.O) shares, which largely dictated the direction of Wednesday's stock market, were off 1.1 percent at $492.24.

Trading in Apple topped 17 million shares at midday, above its 15.4 million average in the last 25 days.

According to a Chinese newspaper website, some cities have asked retailers to take Apple iPad tablets off shelves after a legal battle between a Chinese technology firm and Apple over trademark issues.

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

SINGAPORE – Global stocks extended a rally Thursday amid investor optimism that the U.S. economy may grow more than previously expected this year.

Benchmark oil stayed below $98 per barrel while the dollar rose against the euro but fell against the yen.

In early trading in Europe, the FTSE 100 index of leading British shares was steady at 5,789.42 while Germany’s DAX was 0.2 percent higher at 6,628.94. The CAC-40 in Paris advanced 0.5 percent at 3,384.05. Wall Street also appeared headed for a higher opening, with Dow Jones industrial futures rising 0.1 percent to 12,671 while S&P 500 futures gained 0.1 percent to 1,321.30.

The gains followed a rally in Asia earlier in the day. 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.

Signs of an improving U.S. economy have helped bolster trader sentiment. Factories raised output in January by the most in seven months, according to the Institute for Supply Management’s manufacturing index on Wednesday. And the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.

Investors have also been cheered by growing optimism that contagion from a likely Greek debt default can be contained.

Global equities are advancing “on hopes of the global economy gaining a solid footing and the banking sector continued to rally on the belief that Europe will avoid a catastrophe,” IG Markets in Melbourne said in a report.

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. Australia’s S&P/ASX 200 jumped 1 percent to 4,267.80. Benchmarks in Singapore, Taiwan, New Zealand, Thailand and India all gained ground.

“After stepping into a soft patch in the fourth quarter, Asian economic growth is gradually picking up,” said Frederic Neumann, co-head of Asian economics at HSBC in Hong Kong. “This rebound is led by the region’s giants: China, India, and Japan.”

Early Thursday, the Tokyo Stock Exchange suspended trading in 241 securities, including Sony Corp. and Hitachi Ltd., due to a glitch in its electronic trading system. Trading in the suspended securities resumed near midday.

Benchmark oil for March delivery rose 30 cents to $97.91 per barrel Thursday in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at $97.61 on Wednesday.

In currencies, the euro fell to $1.3145 from $1.3158 late Wednesday in New York. The dollar fell to 76.09 yen from 76.20 yen.

SINGAPORE – Asian stocks extended a global rally Thursday amid investor optimism that the U.S. economy may grow more than previously expected this year.

Tokyo’s Nikkei 225 rose 0.8 percent to 8,881.27 while Hong Kong’s Hang Seng gained 1.2 percent to 20,585.44 and Seoul’s Kospi added 1.4 percent to 1,985.82.

Signs of an improving U.S. economy have helped bolster trader sentiment. Factories raised output in January by the most in seven months, according to the Institute for Supply Management’s manufacturing index on Wednesday. And the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.

Investors have also been cheered by growing optimism that contagion from a likely Greek debt default can be contained.

Global equities are advancing “on hopes of the global economy gaining a solid footing and the banking sector continued to rally on the belief that Europe will avoid a catastrophe,” IG Capital in Melbourne said in a report.

On Wednesday, the Dow Jones industrial average closed up 0.7 percent at 12,716.46. The S&P added 0.9 percent to 1,324.09 while the Nasdaq composite index rose 1.2 percent to close at 2,848.27.

European stock indexes also rose Wednesday. France’s CAC-40 gained 2.1 percent while Britain’s FTSE 100 rose 1.9 percent and Germany’s DAX jumped 2.4 percent.

China’s benchmark Shanghai Composite Index climbed 0.2 percent to 2,272.99 on Thursday amid signs manufacturing improved in January for a second straight month.

Shares in Singapore, Australia, Taiwan and New Zealand all gained ground.

“After stepping into a soft patch in the fourth quarter, Asian economic growth is gradually picking up,” said Frederic Neumann, co-head of Asian economics at HSBC in Hong Kong. “This rebound is led by the region’s giants: China, India, and Japan.”

Early Thursday, the Tokyo Stock Exchange suspended trading in 241 securities, including Sony Corp. and Hitachi Ltd., due to a glitch in its electronic trading system. Trading in the suspended securities was to resume midday.

Benchmark oil for March delivery rose 6 cents to $97.67 per barrel Thursday in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at $97.61 on Wednesday.

In currencies, the euro rose to $1.3193 from $1.3158 late Wednesday in New York. The dollar slipped to 76.12 yen from 76.15 yen.

BANGKOK – World stock markets stalled Wednesday as worries that Europe’s debt crisis was taking hold in its larger economies outweighed signs that the U.S. economy was strengthening.

Benchmark oil was steady at $102 per barrel while the dollar rose against the yen and the euro.

European shares fell in early trading, as markets struggled to shake off prospects for more bad news out of the eurozone. Fitch Ratings said Tuesday that a number of euro countries, including Italy, could see their credit ratings downgraded by the end of this month as they struggle to cope with too much debt and slowing economic growth.

“Fitch gave notice that it will downgrade Italy this year, serving as a reminder that other ratings agencies also no longer view any EU country’s debt rating safe from any negative action,” analysts at DBS Bank in Singapore said in a research note Wednesday.

Britain’s FTSE 100 lost 0.3 percent at 5,681.82. Germany’s DAX lost 0.3 percent to 6,144.14 and France’s CAC-40 was down slightly at 3,209.97. Wall Street appeared set for a mixed opening, with Dow Jones industrial futures gaining marginally to 12,392 and the broader S&P 500 futures down slightly to 1,285.50.

Earlier in the day in Asia, financial markets were mostly higher, supported by expectations that China will tweak its monetary policy to encourage growth, but in a limited way to prevent inflaming its already sizzling property market.

Andrew Sullivan, principal sales trader at Piper Jaffray in Hong Kong, said he believes a move from monetary authorities could come shortly after Chinese New Year, which begins Jan. 23 and lasts a week.

“I think we’re in a little bit of a wait-and-see period. A lot of larger things are waiting in the wings at the moment,” he said.

Japan’s Nikkei 225 index rose 0.3 percent to close at 8,447.88. Hong Kong’s Hang Seng index gained 0.8 percent to 19,151.94. Australia’s S&P ASX 200 added 0.9 percent to 4,187.50.

Benchmarks in Singapore, Taiwan, and India also rose. South Korea’s Kospi fell 0.4 percent at 1,845.55.

Mainland Chinese shares edged lower as traders booked profits following two days of sharp gains. The benchmark Shanghai Composite Index lost 0.4 percent while the Shenzhen Composite Index was marginally lower at 880.71. Inflation data was expected out of China on Thursday.

Commodity prices, which rose on expectations that China’s economy will continue to grow this year, helped boost mining and energy shares.

Paladin Energy, an Australian uranium miner, jumped 5.4 percent. Energy Resources of Australia rose 2.6 percent. Hong Kong-listed Zijin Mining Group Co., China’s largest gold miner, gained 3.7 percent.

Prospects for retailers also brightened. Hong Kong-listed clothing chain Esprit Holdings rose 1.5 percent. In Australia, David Jones added 2.1 percent, JB Hi-Fi Ltd. gained 1.1 percent and Woolworths Ltd. rose 0.5 percent.

The U.S. economy appears to have strengthened in recent weeks. A series of positive reports on hiring, manufacturing and consumer sentiment have eased fears that Europe’s unfolding debt crisis will drag the U.S. into another recession.

Traders also hope the brighter economic outlook will translate into rich fourth-quarter profits, which companies will announce over the next few weeks. One positive early sign came from aluminum maker Alcoa, which said late Monday that its fourth-quarter revenue far outpaced analysts’ projections.

Benchmark crude for February delivery was steady at $102.24 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 93 cents to finish at $102.24 per barrel in New York on Tuesday.

In currency trading, the euro fell to $1.2774 from $1.2790 late Tuesday in New York. The dollar rose to 76.92 yen from 76.82 yen.

BANGKOK – Asian stock markets were mostly higher Wednesday, amid signs of a strengthening U.S. economy and relief that France won’t lose its sterling credit rating.

Japan’s Nikkei 225 index rose 0.2 percent at 8,435.59, tracking overnight gains on Wall Street. Hong Kong’s Hang Seng index gained 0.3 percent to 19,052.36. Australia’s S&P ASX 200 added 1 percent to 4,193.40.

Benchmarks in Singapore, Taiwan, and mainland China also rose. Opposing the trend was South Korea’s Kospi, which fell 0.3 percent at 1,846.99.

Commodity prices, which rose on expectations that China’s economy will continue to grow this year, helped boost mining and energy shares.

Paladin Energy, an Australian uranium miner, jumped 6.1 percent. Energy Resources of Australia rose 3.2 percent. BHP Billiton, the world’s largest mining company, gained 1.6 percent. Hong Kong-listed Zijin Mining Group Co., China’s largest gold miner, gained 2.7 percent.

Financial companies also rose on the back of strong leads from U.S. banks. Japan’s Mizuho Financial Group Inc. added 0.9 percent and Australia’s Westpac rose 2.3 percent.

In Europe, meanwhile, markets soared Tuesday after Fitch Ratings said that it will not downgrade France’s credit rating this year. France’s CAC-40 index closed 2.7 percent higher, and Germany’s DAX rose 2.4 percent.

A downgrade for France could scuttle the region’s efforts to stem its debt crisis. Europe’s bailout fund needs France and Germany to keep their sterling credit ratings so it can borrow at affordable rates.

The U.S. economy appears to have strengthened in recent weeks. A series of positive reports on hiring, manufacturing and consumer sentiment have eased fears that Europe’s unfolding debt crisis will drag the U.S. into another recession.

The prevailing optimism led to gains Tuesday on Wall Street. The Dow Jones industrial average rose 0.6 percent to 12,462.47. The Nasdaq composite index gained 1 percent to 2,702.50. The S&P 500 index rose 0.9 percent to 1,292.08.

*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)

LONDON – Global stock markets mostly rose Tuesday after a run of solid economic news, notably out of China, helped keep concerns over the European debt crisis at bay.

The euro also bounced back, trading 0.7 percent higher at $1.3041. Last week, it hit a 15-month dollar low of $1.2857 on worries that the European debt crisis will escalate this year and envelop Italy, the third-largest economy in the 17-nation eurozone.

Europe’s debt woes will likely remain the main catalyst to markets over the coming days and weeks, but in the absence of any fresh bad news, trading in 2012 has got off to a fairly buoyant start. Surveys showing that growth in China and India may be picking up momentum has helped shore up the underlying mood.

However, many of the world’s leading indexes are starting 2012 after a year to forget.

In Europe, Germany’s DAX was up 1.2 percent at 6,146 but the CAC-40 in France was 0.5 percent lower at 3,206. Britain’s FTSE 100 index of leading British shares, which was closed Monday, was trading 1 percent higher at 5,627.

Wall Street was poised for a fairly solid opening — Dow futures were up 1.1 percent at 12,286 while the broader Standard & Poor’s 500 futures rose 0.6 percent to 1,259.

It’s a very busy week on the economic data front, culminating in Friday’s closely watched U.S. non-farm payroll figures for December. That often sets the market tone for a week or two and investors will be keen to see if the recent improvement in the U.S. economic news is evident in the figures.

The consensus in the markets is that the U.S. economy generated another 150,000 or so jobs during the month — a solid, if unspectacular, jobs creation in the world’s largest economy.

Before then, investors have other frontline figures to digest, kicking off Tuesday with the December manufacturing survey from the Institute for Supply Management, which is expected to rise to 53.4 in December from the previous month’s 52.7 — anything above 50 indicates expansion.

Investors will also be interested in the minutes from the last rate-setting meeting of the U.S. Federal Reserve — looking to see whether the central bank’s outlook is less gloomy than before.

“The market is hoping for further improvement in U.S. December payrolls data and this could lend support to risk appetite,” said Jane Foley, an analyst at Rabobank International.

Although that could give the euro some further respite this week, Foley said the currency “remains in a very vulnerable position.”

Following a year when policymakers across the eurozone have consistently failed to match expectations of resolving the debt crisis, investors will be monitoring how efforts are going to enforce greater budgetary discipline on the 17 countries that use the euro.

This week, both France and Germany will be tapping bond markets for fairly large amounts of money in what will be fairly significant tests of market confidence. Next Monday, French President Nicolas Sarkozy and German Chancellor Angela Merkel will be holding their first meeting of the new year.

Progress on Greece’s talks with private creditors to take a bigger loss on their Greek bonds will also be closely monitored. As part of the country’s second financial bailout, private creditors have been asked to forgive 50 percent of their holdings, but many in the markets think that’s not enough. There’s speculation that the so-called Greek haircut may have to rise, possibly up to 75 percent.

“With the continuing economic woes of the country and the possibility that at some stage the rest of the EU may decide not to throw good money after bad there must be a growing possibility that the actual writedown could eventually be close to 100 percent,” said Gary Jenkins, director of Swordfish Research.

Earlier, Asian stocks rose, with Hong Kong’s Hang Seng Index, on its first trading session of 2012, jumped 2.4 percent to close at 18,877.41. South Korea’s Kospi index rose 2.7 percent to 1,875.41 and Australia’s S&P ASX 200 gained 1.1 percent at 4,101.20. Benchmarks in Japan and mainland China remained closed for the extended New Year’s holiday.

Oil prices tracked equities higher — benchmark crude for February delivery rose $2.07 to $100.90 a barrel in electronic trading on the New York Mercantile Exchange.

____

Pamela Sampson in Bangkok contributed to this report.

LONDON (Reuters) – Better-than-expected data from China's giant manufacturing sector boosted global stocks and the euro on Tuesday and pushed safe-haven bets like German bonds lower.

Europe's debt crisis still clouds the outlook ahead of a daunting first quarter of borrowing which is expected to push the euro lower and undermine demand for the region's lower-rated sovereigns.

Signs of improved growth in the United States may also cool any speculation about another round of money-printing by the Federal Reserve, improving the outlook for the dollar.

"The overall bias remains for more euro weakness…given the growth and debt dynamics," said Callum Henderson, global head of FX research with Standard Chartered Bank in Singapore.

The euro rose 0.3 percent against the dollar to $1.2983, but stayed within striking distance of its 2011 trough of $1.2858 hit last week.

"There's a little bit of optimism in the markets after upside surprises on the Chinese data front and also German manufacturing PMI was slightly better than expected yesterday," said Manuel Oliveri, currency strategist at UBS in Zurich.

"But generally we stick to the view that rallies in the euro should be sold into," he added.

ECONOMIC DATA EYED

The official Chinese purchasing managers' index released on Sunday indicated a slight rise in factory activity in December.

Investors will also watch the UK manufacturing PMI for January, due at 0928 GMT, and ISM Manufacturing PMI data for the United States at 1500 GMT for further signs of recovery.

European stocks extended recent gains to open up 0.9 percent after hitting a two-month high on Monday while London traders were still on holiday. The heavily commodity-weighted UK FTSE 100 (.FTSE) index opened up 1.9 percent.

U.S. crude jumped around 1.5 percent to almost $109 a barrel, also reflecting a bounce over the Christmas period due to escalating tensions between Iran and the West.

Spot gold rose as much as 1.4 percent to $1,586.95 earlier on Tuesday, also helped by investors renewed appetite for riskier assets.

Influential investor Jim Rogers, a well-known commodities bull, told Reuters he remains bullish on commodities in general but expects gold will drop further given the run-up over the last 10 years.

"In my view, gold could go to $1,200-$1,300 (an ounce)," Rogers said in an interview with Reuters Insider.

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Asset returns in 2011: http://r.reuters.com/suz52

Sector performance in 2011: http://link.reuters.com/wuv75s

Debt crisis in graphics: http://r.reuters.com/hyb65p

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(Additional reporting by Neal Armstrong and Masayuki Kitano)

BANGKOK – Asian stock markets were mixed in holiday-thinned trading Monday after weak U.S. indicators dulled optimism about prospects for the world’s biggest economy.

Several markets were closed including Hong Kong, Singapore, Australia, Indonesia, Malaysia and New Zealand. Oil traders were also on holiday. Wall Street and European stock markets are closed Monday because Christmas fell on a Sunday this year.

Japan’s Nikkei 225 stock index finished up 1 percent at 8,479.34 after being closed for a public holiday Friday while South Korea’s Kospi fell 0.6 percent to 1,856.70.

China’s Shanghai Composite Index shed 0.7 percent to 2,190.11. Markets in India and the Philippines gained while benchmarks inTaiwan and Thailand fell.

Figures showing that U.S. consumer spending and personal income rose by a modest 0.1 percent in November were below market expectations. The headline 3.8 percent increase in durable goods orders last month masked a decline in a crucial investment measure, benefiting from big orders for Boeing aircraft.

The data offset some of the optimism in markets about the U.S. economy following a run of largely positive indicators. Since Thursday, investors have taken heart from figures showing that the number of initial jobless claims in the U.S. unexpectedly fell 4,000 last week to 364,000, the lowest level since April 2008.

While the U.S. economy has been the dominant driver in markets the past few days, Europe’s debt crisis is likely to remain the key market focus next year.

The Dow Jones industrial average rose 124.35 points, or 1 percent, to 12,294 on Friday in quiet pre-holiday trade. The Nasdaq composite index gained 19.19 points, or 0.7 percent, to 2,618.64. The Standard & Poor’s 500 index added 11.33 points, or 0.9 percent, to 1,265.33.

In currencies, the euro was up 0.1 percent at $1.3068. The dollar was down 0.1 percent at 77.96 yen.