NEW YORK – Wall Street futures are rising a day after the U.S. Federal Reserve pledged to keep interest rates low until late 2014 to nurture the nation’s stubbornly slow economic recovery.

Dow Jones industrial futures are up 52 points to 12,740. The broader S&P 500 futures are up 5 points to 1,325. And the Nasdaq composite is up 3 points to 2,463.

The Fed cut rates to near zero in December 2008 during the financial crisis, and has held them there ever since.

Caterpillar’s stellar fourth-quarters earnings report may also buoy investors. Its stock rose 3 percent in premarket trading.

European markets rose as Italy saw lower borrowing rates at a bond auction and talks resumed in Greece on a debt relief deal. Asian markets were mixed, with Japan’s Nikkei falling.

BANGKOK – Asian stock markets posted muted gains Thursday after the U.S. central bank pledged to keep interest rates low for another three years to nurture the country’s stubbornly slow economic recovery.

Benchmark oil hovered just below $100 per barrel while the dollar fell against the euro and the yen.

Hong Kong’s Hang Seng Index jumped 1.2 percent to 20,342.71 on its first trading day since the Chinese New Year holiday. South Korea’s Kospi rose 0.2 percent to 1,956.21. Benchmarks in Thailand and New Zealand also rose.

Japan’s Nikkei was 0.4 percent lower at 8,853.02 as a weakening dollar pressured the country’s exporters. Benchmarks in Singapore and Malaysia also fell.

Markets in Taiwan and mainland Chinese remained closed for the Chinese New Year. Markets in India and Australia were closed for public holidays.

On Wednesday, the U.S. Federal Open Market Committee said it was unlikely to raise interest rates before late 2014. It had previously said it expected to keep rates low into the middle of 2013.

The Fed cut rates to near zero in December 2008, during the financial crisis, and has held them there ever since. The announcement was a sign that the Fed expects the economy, which is improving, to need significant help for three more years.

Analysts said some stock buyers rejoiced that the Fed was leaning toward promoting economic growth.

“With the FOMC sending out a strong signal that monetary policy is likely to remain accommodative for even longer than previously expected, risk assets are in a very good position,” Stan Shamu of IG Markets in Melbourne said in an email.

Wall Street welcomed the news, with the Dow Jones industrial average closing up 0.6 percent at 12,756.96 — the highest close since May 10. The Standard & Poor’s 500 index rose 0.9 percent to 1,326.06. The Nasdaq composite index gained 1.1 percent to close at 2,818.31.

Energy shares got a boost after crude briefly topped $100 per barrel on Wednesday. South Korea’s oil refiner S-Oil Corp. rose 2.5 percent, while China National Offshore Oil Corp., known as CNOOC, rose 2.1 percent in Hong Kong.

Hong Kong-listed Zijin Mining Group, China’s largest gold miner, jumped 4.1 percent amid rising prices in the precious metal.

But Japanese export shares didn’t fare so well. Low interest rates in the U.S. would likely weigh on the dollar, giving the tenaciously strong yen another unwelcome boost.

Yamaha Motor Corp. sank 2.4 percent, while Sony Corp. lost 1.2 percent. Toshiba Corp. was 1.2 percent down.

Lee Kok Joo, head of research at Phillip Securities in Singapore, said the Fed announcement would likely have only a short-term affect on equities.

“Beyond that, you still need to look at the macro picture,” he said, referring in particular to the sovereign debt crisis in Europe. “Things are still pretty uncertain in the European region.”

Greece, which faces an important bond repayment deadline in March, is struggling to reach a deal with creditors to prevent a chaotic default on its massive debts. A default could trigger a financial crisis in Europe and beyond.

Private sector investors that hold a large part of Greece’s debt are being asked to swap their existing bonds with new ones of a reduced value, longer maturity and lower interest rate. Greece needs the deal if it is to avoid default this spring.

Benchmark crude for March delivery was up 57 cents to $99.97 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose by 45 cents to finish at $99.40 per barrel in New York on Wednesday. At one point it was as high as $100.40.

The prospect of low interest rates dragged on the dollar, since it reduces the returns that investors get from holding assets denominated in that currency. The euro rose to $1.3109 from $1.3084 late Wednesday in New York. The dollar fell to 77.69 yen from 77.81 yen.

BANGKOK – Asian stock markets were mostly higher Thursday after the U.S. central bank pledged to keep interest rates low for another three years to nurture the country’s stubbornly slow economic recovery.

Hong Kong’s Hang Seng Index jumped 1.1 percent to 20,322.51 on its first trading day since the Chinese New Year holiday. South Korea’s Kospi rose 0.2 percent to 1,956.14. Benchmarks in Singapore and New Zealand also rose.

Japan’s Nikkei was 0.4 percent lower at 8,846.96, following strong gains a day earlier. Markets in Taiwan and mainland Chinese remained closed for the Chinese New Year. The Australian market was closed for a public holiday.

On Wednesday, the U.S. Federal Open Market Committee said it was unlikely to raise interest rates before late 2014. It had previously said it expected to keep rates low into the middle of 2013.

The Fed cut rates to near zero in December 2008, during the financial crisis, and has held them there ever since. The announcement was a sign that the Fed expects the economy, which is improving, to need significant help for three more years.

Analysts said stock buyers rejoiced that the Fed was leaning toward promoting economic growth.

“With the FOMC sending out a strong signal that monetary policy is likely to remain accommodative for even longer than previously expected, risk assets are in a very good position,” said Stan Shamu of IG Markets in Melbourne.

Wall Street welcomed the news, with the Dow Jones industrial average closing up 0.6 percent at 12,756.96 — the highest close since May 10. The Standard & Poor’s 500 index rose 0.9 percent to 1,326.06. The Nasdaq composite index gained 1.1 percent to close at 2,818.31.

Benchmark crude for March delivery was up 39 cents to $99.79 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose by 45 cents to finish at $99.40 per barrel in New York on Wednesday. At one point it was as high as $100.40.

The prospect of low interest rates weighed on the dollar, since it reduces the returns that investors get from holding assets denominated in that currency. The euro rose to $1.3103 from $1.3084 late Wednesday in New York. The dollar fell to 77.75 yen from 77.81 yen.

NEW YORK (Reuters) – Stock index futures erased gains, with the S&P 500 and the Dow turning negative on Wednesday as early optimism over a report the IMF would increase its lending facility proved short-lived.

S&P 500 futures fell 1.3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures lost 14 points, but Nasdaq 100 futures rose 3 points.

(Reporting By Edward Krudy; editing by Jeffrey Benkoe)

(Reuters) – Stock index futures pointed to a higher open for equities on Wall Street on Wednesday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 up 0.4-0.5 percent at 1045 GMT.

Yahoo (YHOO.O) will be in the spotlight after co-founder Jerry Yang quit the company he started in 1995, appeasing shareholders who had blasted the internet pioneer for pursuing an ineffective personal vision and impeding investment deals that could have transformed the company.

Shares in the company traded in Frankfurt (YHOO.F) rose 2.1 percent.

European shares (.FTEU3) turned flat in morning session after opening lower, with traders citing media reports the International Monetary Fund would boost its lending facility, as the region battles a long-running debt crisis.

Greece goes head to head with its creditors on Wednesday in a renewed attempt to break a deadlock in negotiations to slash the country's debt and stave off default.

U.S. 10-year Treasuries were little changed in Asia on Wednesday and were seen likely to be supported on dips, with the euro zone's sovereign debt crisis helping to bolster the safe haven appeal of U.S. debt.

Prudential Financial Inc (PRU.N), the No.2 U.S. life insurer, and Korea Life Insurance (088350.KS) plan to submit separate initial bids for a controlling stake in Tong Yang Life Insurance (082640.KS), sources familiar with the matter said on Wednesday.

Chipmaker Linear Technology Corp (LLTC.O) posted quarterly revenue modestly above Wall Street estimates and forecast strong third-quarter sales on improving bookings, sending its shares up 8 percent after market.

Majesco Entertainment Co's (COOL.O) fourth-quarter results came in below market expectations, and the video game publisher forecast a weak 2012 as it expects higher selling and marketing costs and negligible revenue from its social and mobile games business.

BB&T Corp (BBT.N) and the TD Bank unit of Canada's Toronto-Dominion Bank (TD.TO) have submitted preliminary bids to buy BankUnited Inc (BKU.N), the Wall Street Journal reported, citing people familiar with the matter.

On the macro front, investors awaited December's Producer Price Index, industrial production and capacity utilization data, as well as the National Association of Home Builders/Wells Fargo's January housing market index.

On the earnings front, a raft of companies were due to report results, including Goldman Sachs (GS.N), eBay Inc

(EBAY.O), Bank Of New York Mellon Corp (BK.N), State Street Corp (STT.N) and Charles Schwab Corp (SCHW.N).

U.S. stocks advanced on Tuesday, pushing the S&P 500 to its highest since early August, but sharply pared gains late in the session as Citigroup's steep drop in profit gave investors a reason to unload bank shares.

The Dow Jones industrial average (.DJI) rose 60.01 points, or 0.48 percent, to 12,482.07 at the close. The Standard & Poor's 500 Index (.SPX) added 4.58 points, or 0.36 percent, to 1,293.67. The Nasdaq Composite Index (.IXIC) gained 17.41 points, or 0.64 percent, to 2,728.08.

(Reporting by Blaise Robinson. Editing by Jane Merriman)

BANGKOK – Asian stock markets rose Tuesday, buoyed by a successful sale of French government bonds and China’s economic growth slowing less than expected.

Benchmark oil rose to near $100 per barrel, while the dollar fell against the yen and the euro.

Japan’s Nikkei 225 index added 0.8 percent to 8,447.77. Hong Kong’s Hang Seng climbed 1.9 percent at 19,373.30 and South Korea’s Kospi jumped 1.6 percent to 1,889.09. Australia’s S&P/ASX 200 gained 1.5 percent to 4,210.70.

Shares in mainland China briefly slipped into negative territory before recovering after the release of government figures showing that growth in the world’s second-largest economy slowed in the final quarter of 2011 to 8.9 percent, its lowest rate in 2 1/2 years.

Markets welcomed the news, however, as growth was expected to settle at 8.7 percent, analysts said.

“That means China’s economy is not slowing down as quickly as expected. That gave an overall boost to market sentiment,” said Jackson Wong, vice president at Tanrich Securities in Hong Kong.

Other key benchmark stock indexes posted gains, buoyed by a strong sale of French bonds on Monday and taking a downgrade of the Europe’s emergency bailout fund in stride. Stocks in Singapore, Taiwan, India, Indonesia and New Zealand rose.

France easily sold about euro 8.6 billion ($10.9 billion) of debt with very short maturities, as well as 25-week and 51-week bonds.

On the secondary markets, where the issued bonds are later traded openly, the interest rate on France’s benchmark 10-year bond fell, indicating investors feel France remains a relatively good bet — and perhaps are paying less heed to ratings agencies.

Analysts at Credit Agricole CIB said in an email that “given extremely bearish market sentiment, the market appears to absorb good news more easily and any good news may boost risk appetite with short-covering rallies.”

Investor sentiment still faces multiple headwinds — the latest being Standard & Poor’s downgrade of the eurozone’s rescue fund by one notch to AA+. While that could hurt the fund’s ability to raise cheap bailout money to resolve the continent’s debt crisis, Credit Agricole said the development had largely been priced in to the market.

U.S. markets were closed Monday for a public holiday.

In currency trading, the euro rose to $1.2731 from $1.2670 late Friday in New York. The dollar fell to 76.70 yen from 76.96 yen.

Benchmark oil for February delivery jumped $1.28 to $99.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 40 cents to settle at $98.70 in New York on Friday.

U.S. stock indexes rose strongly Friday morning after every European nation except for Britain agreed to consider forging closer economic ties in hopes of preventing another debt crisis.

All 17 nations that use the euro will sign a treaty that allows a central European authority closer oversight of their budgets. Nine other EU nations are considering it. Britain is the sole holdout.

The agreement came in marathon overnight talks among European leaders at a two-day summit in Brussels. An agreement on tighter fiscal controls is considered a crucial step before the European Central Bank commits more money to lowering borrowing costs of heavily indebted countries like Italy and Spain.

The Dow Jones industrial average rose 126 points, or 1.1 percent, to 12,124 in the first hour of trading. DuPont limited the Dow’s gain. The chemical and materials company slumped 4.7 percent after the company said it expects earnings this year will fall well short of Wall Street’s forecasts because of weak demand for electronics and industrial supplies.

Bank stocks led the market higher, reflecting traders’ optimism about Europe’s progress toward solving its crisis. Morgan Stanley jumped 5.3 percent, while Citigroup Inc. rose 4.6 percent.

Banks have been weighed down for months by fears about their exposure to Europe. The biggest European banks have been downgraded. If Europe’s crisis spins out of control, U.S. banks that do business with them will suffer.

The S&P 500 rose 14 points, or 1.1 percent, to 1,248. The Nasdaq rose 25, or 1 percent, to 2,621.

The gains were broad. All 10 of the S&P’s 10 industry groups rose.

Stocks in Europe rose higher after U.S. markets opened. Germany’s DAX was up 2 percent, France’s CAC 40 2.5 percent.

Germany and France, the two biggest economies in the euro zone, had hoped to persuade all 27 members of the European Union to change an EU treaty and impose tight fiscal rules on its members. Britain refused to join in because it wanted to be exempt from proposed financial rules.

Many think the only path out of the debt crisis is a more active role by the European Central Bank, which could buy up more government debt to keep nations’ borrowing costs down. It currently buys bonds in the markets, but only reluctantly, and in small quantities.

Among other companies making big moves:

• Pall Corp. surged 10.7 percent after the filtration equipment maker reported fiscal first-quarter earnings that far exceeded analysts’ expectations.

• The Cooper Cos. Inc. leaped more than 15 percent after the eye care company topped expectations with its fiscal fourth-quarter performance.

• Texas Instruments Inc. fell 1.8 percent after the semiconductor maker said the weak global economy has hurt demand for electronic devices that use its chips.

___

Daniel Wagner can be reached at http://www.twitter.com/wagnerreports

TORONTO (Reuters) – Toronto's main stock index closed lower on Friday as investors booked some profits after the TSX notched its biggest weekly gain in more than two years on optimism that steps were being taken to resolve Europe's debt crisis.

The mining-heavy materials sector dragged the index lower, as shares of gold miners slid despite spot gold edging higher to post its largest weekly gain in more than a month.

This was countered by strong financials, which were lifted by better than expected earnings from two of the country's largest banks.

Also helping investor sentiment was data that showed the U.S. unemployment rate fell to a 2-1/2 year low of 8.6 percent in November as companies stepped up hiring, further evidence the U.S. economic recovery was gaining momentum.

"I would have to think we've had a good week," said Fred Ketchen, director of equity trading at ScotiaMcLeod. "It's Friday and people don't want to go home without locking in some profits. I think we have seen that take place today."

The Toronto Stock Exchange's S&P/TSX composite index ended down 38.20 points, or 0.32 percent, at 12,075.09. Four of the index's 10 sectors were in positive territory.

Goldcorp, Canada's second largest gold producer, was the biggest weight on the index, slipping 3.7 percent to C$52.33. Barrick Gold, the world's No. 1 producer, also dragged on the materials sector, falling 3 percent to C$51.88.

Technology issues also fell, as Research In Motion plunged 9.2 percent to C$17.08 after the BlackBerry maker warned it would fall short of its financial targets after taking a huge charge to write down inventories on its underwhelming PlayBook tablet.

The Bank of Nova Scotia was another big drag on the index, falling 2.49 percent to finish the session at C$48.99, despite announcing a 10.7 percent rise in fourth-quarter profit.

Other banks fared better. The Royal Bank of Canada was the most heavily weighted gainer, up 3.7 percent at C$48.77, after Canada's biggest lender reported a quarterly profit that beat expectations.

No. 2 lender, Toronto-Dominion Bank, was the second top advancer, up 1.18 percent at C$72.75, after announcing stronger than expected results on Thursday.

Despite Friday's slide, the index posted a healthy 5.3 percent gain on the week. On Wednesday, the TSX had its biggest single-day gain since March 2009, jumping more than 4 percent.

Markets also latched on to chatter that policymakers appeared to move a step closer to tackling Europe's debt crisis.

German Chancellor Angela Merkel reiterated her strong support for the euro, and called for a rapid European Union treaty change to remedy the root causes of the euro zone's debt crisis. She warned, however, that Europeans faced a long, hard "marathon" to restore lost market credibility.

Equity strategists and fund managers polled by Reuters predict stocks will continue to grind higher in 2012 as policymakers iron out the euro zone's sovereign debt crisis and improving economic data in Canada and the United States soothes investor concerns about global growth.

"If the next big move is an up move, hold on to your hats, because this will be a run that lasts a number of months," said Brendan Caldwell, president and chief executive of Caldwell Investment Management Ltd.

"The fact that we haven't had a big down move to follow the up move (is) a very, very positive sign."

($1=$1.02 Canadian)

(Additional reporting by Jon Cook; editing by Rob Wilson)

LONDON (Reuters) – European shares rose on Friday while the euro held onto modest gains as investors bought beaten-down riskier assets, with markets focused on whether debt-laden Italy could implement tough austerity measures crucial to avoid a euro zone meltdown.

Italy's Senate is due to vote on Friday on the austerity measures demanded by the European Union, while a new emergency government is expected within days, ending the reign of Prime Minister Silvio Berlusconi.

Italy has overtaken Greece as the main focus of the euro zone debt crisis this week, with yields on its benchmark 10-year bonds having risen as far as 7.5 percent, to what are considered unsustainable levels. Analysts fear Italy's potential inability to fund itself could be a systemic risk given the size of its economy and its debt market.

The FTSEurofirst 300 (.FTEU3) index of top European shares was up 0.5 percent at 968.08 points after falling in the previous two sessions. Banks featured among the top gainers, with the sector index (.SX7P) up 1.1 percent.

Sentiment was also supported by a rally on Wall Street where stocks rose nearly 1 percent on Thursday, after drugmaker Merck & Co (MRK.N) cheered investors by raising its dividend and network equipment maker Cisco Systems (CSCO.O) reported earnings that beat analysts' expectations. (.N)

Keith Bowman, an equity analyst at Hargreaves Lansdown said the political change in Italy was helping.

"In the background, supportive U.S. economic data and a broader conclusion that the third quarter corporate results season was by no means a disaster also appears to be playing its part," he added.

The MSCI index of global shares was up 0.5 percent at 301.69, recouping some of its losses made in the past two sessions.

UNSUSTAINABLE COST

The prospect of Italy buckling under its 2 trillion euros of debt has raised concerns over Europe's two-year-old crisis to a new level, because the euro zone's bailout fund does not have enough firepower to rescue the bloc's third largest economy.

Reported steady bond purchases by the European Central Bank have helped bring down yields on Italian bonds, but most traders said the euro zone was still in crisis mode. While ECB buying and positive political developments were helpful, analysts are skeptical they will be enough to spur a sustained drop in Italian bond yields or a rise in the euro.

The euro was slightly higher on the day, changing hands at $1.3646 and staying above a one-month low of $1.3484 touched on Thursday. For the week, the euro is still down about 1.5 percent.

"Euro, to me, is still very much a sell on rallies," said Mitul Kotecha, head of global foreign exchange strategy for Credit Agricole CIB in Hong Kong, adding that his bank's forecast was for the euro to drop to $1.33 by year-end.

"I still think it's going to be some time before we see a sustained drop in Italian bond yields," he added.

Commodity markets were mostly firmer, with spot gold headed for a third week of gains, its longest winning stretch in more than two months. Brent crude was steady near $114, poised for a third week of increases, while copper snapped five days of declines.

(Additional reporting by Atul Prakash and Masayuki Kitano in Singapore; Editing by Catherine Evans)

BANGKOK – World stock markets were mostly higher Friday following signs of progress in debt-plagued Europe — a successful bond sale in Italy and the naming of a new leader in Greece.

Benchmark oil rose to $98 per barrel while the dollar slipped against the euro and the yen.

European shares posted gains in early trading. Britain’s FTSE 100 rose 0.6 percent at 5,472.80. Germany’s DAX rose 0.9 percent at 5,919.99 while France’s CAC-40 added 0.8 percent to 3,087.77.

Wall Street was also poised for gains, with Dow Jones industrial futures 0.1 percent higher at 11,869 and S&P 500 futures rising 0.2 percent to 1,239.30.

The gains in Europe were in line with trading earlier in the day in Asia.

Japan’s Nikkei 225 index closed up 0.2 percent to 8,514.47, a day after the index fell to a five-week closing low of 8,500.80.

Hong Kong’s Hang Seng gained 0.9 percent to 19,137.17 and South Korea’s Kospi added 2.8 percent to 1,863.45. Australia’s S&P/ASX 200 rose 1.2 percent to 4,296.50. Mainland China’s Shanghai Composite Index rose marginally to 2,481.08.

Investors were calmed by news that Greece — which is struggling to pull back from the brink of bankruptcy — had named Lucas Papademos, a respected economist, as its new prime minister on Thursday.

Another sign of stability came after Italy was able to borrow $6.8 billion at lower interest rates than analysts expected. On Wednesday, Italy’s 10-year bond yields shot up alarmingly, stoking panic in financial markets that the country was heading toward a Greece-style debt crisis.

Confidence was also boosted by the prospect of economist Mario Monti replacing Italian Premier Silvio Berlusconi, who has been viewed as an obstacle to meaningful economic reform.

“Europe still dominates and there are still huge concerns, but Greece has a new prime minister and Italy has a new prime minister in the wings, and everyone is much more aware of the seriousness of the nature of what is confronting Europe,” said Andrew Sullivan, principal sales trader at Piper Jaffray in Hong Kong.

Traders have fretted that debt troubles in Italy and Greece could blow up into a massive liquidity crisis and lead to a global financial meltdown.

The European Union warned Thursday that the grouping of 17 nations that use the euro common currency could slip back into recession next year. The European Commission predicted the euro countries will grow a barely perceptible 0.5 percent in 2012 — much less than its earlier forecast of 1.8 percent.

Europe has already bailed out Greece, Portugal and Ireland — but Italy is a much larger economy and its mountain of debt — $2.6 trillion (euro1.9 trillion) — is far too massive for the continent to cover.

Sullivan said economic data next week on the world’s No. 1 economy will be closely watched.

“If any of that data comes out bad, it’s probably going to put Asia into more of a downturn. If there’s bad data out of the U.S. and more out of Europe, we can see Asia taking another step down,” Sullivan said.

Hong Kong-based ERA Mining Machinery Ltd. shot up 19.7 percent after U.S.-based Caterpillar Inc. said it was seeking to buy the Chinese maker of mining machinery for as much as $886 million. ERA designs, builds, sells and supports equipment for underground coal mining in China.

In Seoul, technology shares jumped. LG Electronics gained 6.4 percent and Samsung Electronics was up 5.1 percent. Shares of SK Telecom Co., South Korea’s top mobile carrier, rose 3.1 percent after the company offered to buy a controlling stake in Hynix Semiconductor, Yonhap News Agency reported.

India’s privately owned Kingfisher Airlines dropped 12.7 percent after the carrier was forced to cancel dozens of flights as pilots and crew called in sick after their October salaries were delayed.

In New York on Thursday, the Dow Jones industrial average rose 1 percent to close at 11,893.86. It plunged 389 points Wednesday after Italy’s borrowing rates soared and talks in Greece to name a new prime minister broke down.

Positive economic data from the U.S. also boosted hopes that the world’s No. 1 economy would avoid a new recession.

The Labor Department reported that the number of people applying for unemployment benefits in the U.S. fell to 390,000 last week — the fewest since April. The data suggested layoffs are easing and that the economy grew slightly better over the summer than estimated.

The S&P 500 index gained 0.9 percent to 1,239.70. The Nasdaq rose 0.1 percent to 2,625.15.

In currency trading, the euro rose to $1.3653 from $1.3581 late Thursday in New York. The dollar fell to 77.34 yen from 77.66 yen.

Benchmark oil was up 30 cents at $98.08 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.04, or 2.1 percent, to finish at $97.78 on Thursday.