Asian Markets are set to open high after U.S. stocks climbed, sending the Standard & Poor's 500 Index to a two-month high, amid signs that manufacturing output is increasing from China to Australia and America.
The Dow Jones Industrial Average finished 178.84 points higher, or 1.46%, at 12396.40 with Most S&P sectors were firmly in the black, led by financials and materials. The S&P500 rose 22.92 points, or 1.82%, to 1280.20, while the Nasdaq rose 43.57 points or 1.67%.
The S&P 500 rallied 14% from last year's lowest level on Oct. 3 through Dec. 30 as better-than-estimated economic data fuelled optimism the world's largest economy can shrug off concern over Europe's sovereign-debt crisis. The S&P 500 had the 10th best performance among the world's stock markets in 2011. The gauge still recorded its first annual decline since 2008, posting a loss of 4/100ths of a point.
The euro rose as better than expected economic data boosted riskier assets and triggered short-covering. A rally in European shares on the back of the figures suggested warming appetite for riskier assets at the start of the year. This pushed the euro nearly 1% higher on the day to $1.306, pulling away from its 2011 trough of $1.2858 hit last week. The single currency started 2012 on an upbeat note, having lost 3% last year.
Oil climbed to a six-week high after manufacturing in the U.S. and Asia expanded in December and as concern persisted that further sanctions against Iran may disrupt shipments. Crude oil for February delivery rose $3.80, or 3.8%, to $102.63 a barrel on the New York Mercantile Exchange.
Gold futures jumped the most in 10 weeks on demand for a haven following a report that Iran produced its first nuclear-fuel rod. Silver surged the most in five months as the dollar's decline spurred a commodity rally. Gold futures for February delivery climbed 2.2% to settle at $1,600.50 on the Comex in New York, the biggest gain for a most-active contract since Oct. 25.
SPI 200 future
FTSE 100 Index
Bloomberg, Dow Jones News