London: Stocks rose around the world, driving the MSCI Emerging Markets Index higher for the first time in four days, on evidence of sustained economic expansion. Zinc led a rally in metals.
The MSCI World Index of 23 developed nations' stocks added 0.4 per cent in early New York trade, while the emerging-markets gauge advanced 1 per cent. Futures on the Standard & Poor's 500 Index swung between gains and losses as American International Group's bigger-than-forecast quarterly loss overshadowed an expansion in gross domestic product that beat estimates. Zinc gained 2.6 per cent, its first gain in five days.
India's budget declaration helped restore investor confidence rattled last week by S&P and Moody's Investors Service saying Greece's rising deficit may cause debt downgrades.
Britain emerged from recession at a faster pace than previously estimated in the fourth quarter, the government said. A US report showed the world's biggest economy expanded at a 5.9 per cent rate in the fourth quarter.
"Emerging markets are a strong, structural story," said Michael Ganske, head of emerging-market research at Commerzbank AG in London. "The movement is a reaction to the market being quite depressed over the past couple of days. We are facing a period of higher volatility rather than a long-term, sustained rally."
Europe's Dow Jones Stoxx 600 Index climbed 0.5 per cent as all but 3 out of 19 industry groups advanced. Saint-Gobain, Eur-ope's biggest supplier of building materials, surged 7.5 per cent in Paris after reporting better-than- estimated profit.
Rio Tinto
Rio Tinto Group led gains in mining companies, rallying 2.6 per cent in London.
The MSCI Asia Pacific Index advanced 0.6 per cent, capping its biggest weekly gain in six. Woolworths, Australia's biggest retailer, climbed 5.5 per cent in Sydney as it announced a share buyback.
India's Sensitive Index advanced 2.5 per cent, the most in two months, and South Korea's Kospi Index snapped a two-day slide.
Emerging-market stock gains were paced by a 0.8 per cent advance in Turkey's ISE 100 Index.
Greece's ASE Index rallied 1.9 per cent. Greek bonds rebounded, with the yield on the 10-year security paring Thursday's advance, after Luxembourg Finance Minister Luc Frieden said the euro-region countries "have no choice" but to provide fin-ancial aid for Greece, the Handelsblatt newspaper reported Thursday.
Euro-area governments won't allow the Mediterranean nation to become a risk and no euro country will default, he told the newspaper.
The yield on the 10-year Greek bond dropped 14 basis points to 6.52 per cent, after advancing 14 basis points yesterday. The two-year note yield fell 18 basis points.
The dollar and yen fell against most of their major counterparts as signs the global economy is recovering and gains in global equities encouraged demand for higher-yielding assets.
The dollar declined 0.1 per cent to $1.3560 per euro early in New York yesterday, from $1.3548 on Thursday. It reached $1.3444 on February 19, the strongest level since May 18.
The yen traded at 120.83 per euro from 120.69 Thursday, when it advanced to 119.66, the strongest since February 24, 2009.
Copper for delivery in three months rose 1.3 per cent to $7,090 a metric ton on the London Metal Exchange while zinc advanced $54 to $2,170 a tonne.
