A rescue plan to resolve the Greek financial crisis boosted world sharemarkets, wiping all of yesterday's losses on Wall Street.Materials and energy stocks also climbed as the price of oil rose.The Dow Jones Industrial Average closed 150.25 points, or 1.5
A rescue plan to resolve the Greek financial crisis boosted world sharemarkets, wiping all of yesterday’s losses on Wall Street.
Materials and energy stocks also climbed as the price of oil rose.
The Dow Jones Industrial Average closed 150.25 points, or 1.5%, higher at 10,058.64, its biggest one-day gain since January 4.
This followed a 1% drop on Monday to just below the 10,000 level. All but one of its components were in the black.
The Dow's gains were led by Caterpillar, which jumped 5.3%. Morgan Stanley upgraded its investment rating and said its outlook for industrial conglomerates had improved.
Coca-Cola climbed 3.6% as strong sales in developing countries pushed fourth-quarter profit up 55%.
The Dow's materials components were also particularly strong as metals futures rose. Alcoa climbed 1.8% and DuPont advanced 1.8%.
The S&P 500 Index was up 1.3% to 1070.25 and the Nasdaq Composite was up 1.2% at 2150.87.
Other markets
Canadian shares rallied as commodity prices rose.
The S&P/TSX composite added158.94 points, or 1.4%, to 11,274.24.
European shares finished higher as hopes rose for a European Union solution to Greece's fiscal woes.
European Central Bank president Jean-Claude Trichet left a summit in Sydney amid reports Germany would aid Greece. Possible solutions include both bilateral support as well as internationally coordinated assistance at the European Union level.
Greek banks were notably higher, with Alpha Bank shares up 14.9% and Piraeus Bank shares up 11.6%, boosting the Greek ASE Composite, which jumped 5% to 1895.96, recouping all of Monday's 3.9% loss.
The pan-European Dow Jones Stoxx 600 index finished 0.1% higher to 239.19.
The UK’s FTSE 100 Index rose 0.4% to 5111.84, the German DAX climbed 0.2% to 5498.26 and the French CAC-40 added 0.2% to 3,612.76.
In Asia, Hong Kong stocks rebounded 1.2%, as investors went bargain hunting in beaten-down Chinese banks and local property developers. The Hang Seng Index advanced 239.39 points to 19790.28, snapping a three-day selloff.
Most other Asian markets also gained, an exception being Tokyo's Nikkei Stock Average of 225 companies, which edged down 0.2% to 9932.90.
Toyota Motor gained 2.9% on bargain-hunting after its sharp losses recently. At the end of trading, the company said it would recall about 400,000 vehicles worldwide, to resolve problems in braking systems.
In Seoul, the Kospi gained 1.1% to 9932.90.
Commodities: Oil, gold up
Crude oil futures rose, mirroring strength in the stock market and gaining support from expectations of increased heating demand due to a major snowstorm poised to hit the northeastern and mid-Atlantic US.
Light, sweet crude for March delivery traded $US1.15 cents, or 1.6%, higher at $US73.04 a barrel in New York. Brent crude on the ICE futures exchange traded $US1.29, or 1.8%, higher at $US71.40 a barrel.
Gold futures moved higher on hopes of support for the euro-zone economy and Asian purchasing demand ahead of Chinese New Year.
February gold was up $US8.50, or 0.8%, at $US1074.20 an ounce in New York.
Currencies: Euro up
The euro rose as much as 1.4% to $US1.3838 from $US1.3660 late on Monday after news of the Greek rescue plan broke.
The US dollar was at ¥89.58 from ¥89.30, while the euro was at ¥123.72 from ¥121.97.
The UK pound was at $US1.5706 from $US1.5599.
