FROM MORRISON SECURITIES PTY LTD:

U.S. MARKETS:

The Dow Jones Industrial Average posted its biggest one-day surge in nearly a month after the New York Federal Reserve Bank's president reiterated that interest rates likely will remain low and traders took an optimistic view of global growth.

The Dow rose 181.19 points, or 1.4%, to 12986.58. Standard Poor's 500-stock index added 18.86 points, or 1.38%, to 1387.57. The Nasdaq Composite gained 39.09 points, or 1.3%, to 3055.55.

Blue chips' 2.1% two-day gain was the biggest such increase this year and recouped half the losses in a preceding five-day slide. Materials and energy stocks rose the most among the S&P's 10 sectors.

Hewlett-Packard led the Dow higher, gaining 7.2% after an upbeat report on personal-computer sales.

Buyers latched on to a rumor that China's first-quarter gross domestic product will be better than expected. Increasing concerns about global growth have weighed on stocks.

Economists expect China's first-quarter GDP to have risen 8.3% from a year earlier, according to a Dow Jones Newswires poll. That would be down from 8.9% growth in the fourth quarter and 9.2% for all of 2011.

Federal Reserve Bank of New York President William Dudley said Thursday it was too soon to say the U.S. economy was out of the woods, helping to reinforce the Fed's current ultra-accommodative policy stance.

Late Wednesday, Fed Vice Chairwoman Janet Yellen made an argument for keeping short-term interest rates near zero until late 2014 and held out the possibility for more bond purchases by the central bank if the economy falters. Italy sold EUR4.995 billion ($6.55 billion) of Treasury bonds Thursday, just under the maximum targeted amount of EUR5 billion.

The yield on 10-year Italian government bonds held steady after the auction, holding down fears about borrowing costs in the euro zone. A round of U.S. economic data failed to impress.

New applications for jobless benefits last week had their biggest weekly rise in nearly a year and were higher than expected. Initial jobless claims rose 13,000 to a seasonally adjusted 380,000, the Labor Department said, topping the 358,000 claims expected by economists surveyed by Dow Jones Newswires.

The prior week's level of claims was revised upward. Meanwhile, the U.S. trade deficit registered its biggest contraction in nearly three years in February, narrowing more than economists expected. The deficit in international trade of goods and services fell 12.4% to $46.03 billion, the Commerce Department said, compared with expectations of $52.2 billion. January's result was revised down slightly.

EUROPEAN MARKETS

European stock markets jumped in afternoon trade Thursday, inspired by stellar gains on Wall Street where investors flocked to risky assets after policy makers indicated interest rates will remain low.

Meanwhile, peripheral euro-zone banks dropped after a heavily discounted rights issue from Portugal's Banco Espirito Santo SA. The Stoxx Europe 600 index closed 1.2% higher at 257.36 after a choppy session that saw stocks swing between losses and gains.

The U.K.'s FTSE 100 index ended up 1.3% at 5710.46, Germany's DAX index rose 1.0% to 6743.24, while France's CAC-40 index finished 1.0% higher at 3269.79.

Barclays PLC rallied 5.4% in London, Lloyds Banking Group PLC jumped 4.3%, and HSBC Holdings PLC added 1.3%. BNP Paribas SA rose 2.6% in France, and Deutsche Bank AG rose 2% in Germany.

The FTSE 100 index was further buoyed by miners posting strong gains alongside rising metals prices. Heavyweight Rio Tinto PLC rose 4.5%, BHP Billiton PLC added 2.8% and Xstrata PLC gained 2.5%. Royal Dutch Shell PLC closed 0.5% lower having been off as much as 5.2% following observations of a light oil sheen in a central portion of the Gulf of Mexico, where the firm has operations.

Shell said later in the day that the sheen didn't originate from its platform. Bucking the broader trend, Portugal's PSI 20 index shed 1% to 5,257.21, with shares of Banco Espirito Santo tumbling 11% to around EUR1.

The bank plans to raise up to EUR1 billion in a rights issue and will issue up to 2.56 billion new shares at EUR0.395 each, a 66% discount on the prior day's close.

Spain's IBEX 35 index dropped 0.8% to 7,520.00, adding to recent steep losses. BBVA SA lost 1.8% and Banco Santander SA was off 1.4%. In Italy, the government saw borrowing costs rise in a three-year government bond auction.

The Italian FTSE MIB index was up 1.2% at 14,869.91. Separately, data for the euro zone showed industrial production rose 0.5% in February, and fell 1.8% on an annual basis. Economists surveyed by Dow Jones Newswires had forecast a 0.2% monthly decline and a 1.7% year-on-year fall.

ASIA-PACIFIC MARKETS

Asian stock markets ended mostly higher as Wall Street's rebound Wednesday and a drop in Spanish and Italian government borrowing rates helped restore some investor confidence.

China's Shanghai Composite jumped 1.8%, Hong Kong's Hang Seng Index gained 0.9%, and Japan's Nikkei Stock Average added 0.7%.

South Korea's Kospi lost 0.4% as investors played catch-up after a one-day break for elections. While South Korea's conservative ruling party secured a majority in the parliamentary elections, providing policy stability, markets in Seoul have been on edge amid North Korea's preparations for test firing a long-range rocket in coming days.

Property firms were among the gainers in Hong Kong, with China Resources Land up 3.3% and Guangzhou R&F Properties 2.0% higher. In the financial sector, Bank of China rose 1.9% and New China Life Insurance rallied 3.3%.

The World Bank trimmed its growth forecast for China Thursday, and slowing growth may mean a greater possibility of more stimulus measures.

On the downside, China Coal Energy fell 0.8% after a flooding accident at a mine operated by a unit killed four miners, prompting a suspension of all operations by that unit.

Foxconn International Holdings tumbled 7.4% after core customer Nokia Corp. announced a profit warning for the first half of the year.

Some Tokyo-listed exporters moved ahead, helped by a steady yen. Panasonic climbed 2.1%, while Mazda Motor and Pioneer each added 1.5%.

After the Japanese close, Sony Corp. said it would cut 10,000 jobs worldwide as part of a restructuring, after it issued a profit warning earlier this week.

Shares rose 0.9% before the announcement. Shares in Hitachi Construction Machinery jumped 4.1% after the Nikkei business daily reported the firm is expected to deliver a near 40% lift in consolidating operating profit for the fiscal year. Major exporters dragged in Seoul. Samsung Electronics and LG Electronics each tumbled 2.9%.

COMMODITIES

Base metals closed higher on the London Metal Exchange Thursday, helped by a weaker dollar and a buoyant tone in the stock markets.

At the close, LME three-month copper was 2.2% higher at $8,220 a metric ton. Nickel led the complex, closing 3.3% higher at $18,700/ton.

Oil futures finished higher Thursday as equities rallied, despite a closely watched report from an energy watchdog saying that the crude-oil market is amply supplied.

Light, sweet crude for May delivery settled 94 cents, or 0.9%, higher at $103.64 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled $1.53, or 1.3%, higher at $121.71 a barrel.

The International Energy Agency said production from the Organization of Petroleum Exporting Countries ran ahead of demand during the first quarter, while Saudi Arabia and China stockpiled oil.

Oil stocks rose by as much as 1.2 million barrels a day during the first three months of the year, the IEA said. Gold futures climbed on expectations that demand for the metal as an alternative asset would hold up after Federal Reserve officials voiced support for the central bank's accommodative monetary policies.

The most-actively traded contract, for June delivery, rose $20.30, or 1.2%, to settle at $1,680.60 a troy ounce on the Comex division of the New York Mercantile Exchange, the highest settlement price since March 27.