World markets rise on strong earnings, economic data and easing fears over Greece debt

World markets higher on earnings, growth hopes

LONDON — World stocks rose Wednesday on upbeat corporate earnings reports and as worries about Greece’s debt crisis eased.

France’s BNP Paribas, the euro zone’s largest bank, posted its fourth straight quarterly profit while heavy equipment maker Deere & Co. reported upbeat earnings and a better-than-expected housing report boosted prospects in the U.S., the world’s largest economy.

That helped drive Britain’s FTSE 100 benchmark index up 0.8 percent to 5,287.94 and Germany’s DAX 1.2 percent higher to 5,657.51. France’s CAC-40 rose 1.7 percent to 3,730.68.

Asian indexes also rose, although markets in China and Taiwan were closed for the Lunar New Year holiday, while Wall Street gained on the open. The Dow Jones industrial average rose 0.3 percent to 10,302.44 and the Standard & Poor’s 500 rose 0.4 percent to 1,099.06.

Financial stocks were in demand, with BNP Paribas leading the charge with a 4.7 percent gain after its earnings statement. Italy’s Unicredit Spa was up 2.9 percent and Lloyds Banking Group was up 4.2 percent.

On Tuesday, strong earnings were also reported by the likes of Kraft Foods Inc., apparel retailer Abercrombie & Fitch, drugmaker Merck & Co. and UK bank Barclays.

Signs of growth in the U.S. likewise helped sentiment — the Commerce Department said construction of new homes and apartments rose to an annual rate of 591,000 in January, better than expected.

Eyes will turn to other U.S. data, including jobless claims and inflation, as well as minutes from the Federal Reserve’s latest policy meeting. The minutes will be scrutinized for signs that the central bank is getting to ready to undo its stimulus measures and eventually raise interest rates.

Looming over markets, however, remained Greece’s debt crisis and the danger of contagion to other vulnerable countries in the region. Those fears eased somewhat Wednesday, helping the euro stabilize.

After promising support but providing no details of a bailout, the EU gave Greece a month to show results in its austerity plan to cut budget spending. It also wants details by Friday on its use of swaps to manage the size of its debt in past years.

“It will be interesting to see how dominant the Greece story remains now that the deadlines have been pushed to 16 March for a timeframe of action,” said Daragh Maher, analyst at Calyon.

“This could see the story fade from radar screens and allow some of the ‘Greece discount’ to disappear from the euro as the market obsession moves onwards temporarily at least,” he said.

Earlier in Asia, Japan’s Nikkei 225 stock average jumped 272.58 points, or 2.7 percent, at 10,306.83 and Hong Kong’s Hang Seng index climbed 265.32, or 1.3 percent, to 20,534.01.

South Korea’s Kospi gained 26.38, or 1.7 percent, to 1,627.43 while Singapore added 1.3 percent and India 1.3 percent. Australia’s benchmark advanced 2.1 percent.

Oil prices extended gains above $77 a barrel amid expectations a growing U.S. economy will fuel increased crude demand.

Benchmark crude for March delivery was up 9 cents at $77.10 in electronic trading on the New York Mercantile Exchange. The contract rose $2.88 to settle at $77.01 on Tuesday.

The dollar rose to 90.98 yen from 90.14 yen and the euro fell to $1.3690 from $1.3764 after rallying Tuesday.

AP Writer Alex Kennedy in Singapore contributed to this report.