U.S. STOCK MARKETS

Technology stocks helped drive the biggest advance for the Dow in almost two weeks after investors took comfort in German Chancellor Angela Merkel's stated commitment to hold together the euro zone. The Dow Jones Industrial Average rose 85.33 points, or 0.7%, to 13250.11, and the Standard & Poor's 500-stock index added 9.98 points, or 0.7%, to 1415.51.

Thursday's gains pushed the benchmarks within striking distance of multiyear highs. The S&P 500, on pace to climb for its sixth straight week, closed just 3 1/2 points, or 0.2%, below its highest closing level since May 2008. The Dow is just 29 points below a nearly five-year high.

The Nasdaq Composite Index added 31.46 points, or 1%, to 3062.39. Technology stocks rose the most, followed closely by growth-sensitive materials stocks. Dow component Cisco Systems surged 9.6% after the networking company reported quarterly earnings and revenue that topped analysts' estimates and raised its quarterly dividend by 75% to 14 cents a share.

Wal-Mart Stores notched the biggest decline among blue chips, slumping 3.1% after the retailing giant reported sales that fell short of expectations, countering quarterly earnings that were slightly above estimates.

Facebook fell 6.3%, hitting an all-time low in heavy trading volume, as lockups that prevented early investors in the social-networking giant from selling their shares began to expire.

A raft of U.S. economic news delivered mixed results. Home building slipped in July, missing expectations, but new permits rose to their highest level in four years, a possible sign of confidence for construction going forward.

The Philadelphia Federal Reserve's index of manufacturing activity showed a bigger-than-expected contraction in August. The number of U.S. workers filing applications for unemployment benefits rose last week, in line with forecasts.

EUROPEAN STOCK MARKETS

Spanish stocks rallied and bond yields dropped Thursday after reports the country may look to speed up emergency financial aid for its banking sector, while other European markets inched higher in a lightly traded session.

The IBEX 35 index surged 4.1% to 7,417.30, while the yield on the 10-year Spanish government bond fell 0.13 percentage point to 6.51%, according to electronic trading platform Tradeweb.

Spain is ready to request emergency financial aid under the terms of the previously agreed 100 billion euro ($123 billion) bailout of its financial system, Bloomberg reported, citing a person familiar with the matter. European Commission spokesman Olivier Bailly, however, told reporters in Brussels that Spain hasn't made a formal request to tap into the prepared bailout package.

The Stoxx Europe 600 index closed 0.3% higher at 271.22, after seesawing between small gains and losses for most of the day. Vedanta Resources PLC added 2%, BHP Billiton PLC rose 1.5% and Anglo American PLC gained 1.8%.

Banks were also higher, particularly in Spain and Italy. Banco Popular Espanol SA surged 15%, BBVA SA added 3.8% and Banco Santander SA rose 4%. In Italy, UniCredit SpA added 4.9% and Intesa Sanpaolo SpA rose 4.6%.

The FTSE MIB index gained 1.9% to 14,930.30. U.K. stocks struggled for direction, as miners attempted to lift the benchmark index, while Vodafone Group PLC, off 1.7%, added pressure.

The FTSE 100 index closed marginally higher at 5,834.51. Royal Bank of Scotland Group PLC rose 2.6%, Barclays PLC gained 1.7% and HSBC Holdings PLC added 0.5%, shaking off reports that the banks were subpoenaed in the U.S. in investigations into alleged interest-rate rigging.

In France, the CAC 40 index rose 0.9% to 3,480.49, supported by banks. Credit Agricole SA put on 4.6% and BNP Paribas SA added 2.1%. Germany's DAX 30 index rose 0.7% to 6,996.29. Merck KGaA rose 3.6% after J.P. Morgan Cazenove lifted the stock to neutral from underweight. Deutsche Bank AG increased 3% and Commerzbank AG rose 3.4%.

ASIA-PACIFIC STOCK MARKETS

Asian markets were mostly higher Thursday, as earnings remained the focus in Hong Kong while Japan hit a six-week high on a weakening yen.

The Nikkei Stock Average added 1.6%, as the cheaper local currency encouraged investors to buy exporters: car makers Honda Motor and Mazda Motor advanced 2.2% and 3.3%, respectively, while Panasonic was 5.2% higher, helped by an upgrade to equal weight from underweight from Barclays.

Steelmaking was one of the best-performing sectors in Japan--Nippon Steel was up 3.7% and Tokyo Steel Manufacturing added 5.7%--as analysts point to reduced unease among investors toward earnings deterioration.

Earnings also had an impact in Hong Kong, where the Hang Seng Index was 0.3% higher--technology stocks in particular rose on strong earnings.

Tencent Holdings, the most heavily shorted stock in Hong Kong Wednesday, gained 5.7% after the Chinese online giant benefited from a strong performance in advertising and online gaming.

China's largest PC maker by shipments, Lenovo Group, was up 5.6% after announcing a 30% on-year rise in first-quarter net profit due to strong growth in personal-computer shipments.

Although the Kospi was slightly lower, down 0.1%, foreign buyers remained net buyers for the eighth-consecutive session.

Members in the Hanwha group of companies retreated after news its chairman, Kim Seung-youn, was sentenced to four years in prison for embezzlement and breach of duty: Hanwha Corp. dropped 3.7% and Hanwha Chemical was 2.1% lower.

The Shanghai Composite was 0.1% lower, and Singapore's Straits Times Index was up 0.6%, as resorts and casino operator Genting Singapore jumped 4.2% after Macquarie upgraded the stock to outperform from neutral and a series of large trades pushed up the price.

COMMODITIES

Base metals closed mostly higher on the London Metal Exchange Thursday, although trading conditions were relatively thin and prices lacked strong upward conviction, analysts said.

At the close of open outcry trading, LME three-month copper was 0.9% higher on the day at $7.448.50 a metric ton. Aluminum struggled for upward momentum, spending most of the session in negative territory before closing at $1,840/ton, up just 0.2% on the day.

Crude-oil futures prices settled at a fresh three-month high above $95 a barrel Thursday afternoon, extending to a third day a rally spurred by concerns over tightening supplies.

Nymex September-delivery crude oil settled $1.27 higher at $95.60 a barrel, the highest price since May 11. Traders said Thursday's move above $95 was fueled by position adjustments ahead of the expiration of September crude-oil options at the end of trading on the New York Mercantile Exchange.

North Sea Brent crude oil for September was up 65 cents at $116.50 a barrel, the highest price since May 2. Since it began trading as the front-month contract in mid-July, the contract has gained more than 12% on lower output due to maintenance and operational snags.

Platinum futures surged to a one-month high as a labor strike at the world's No. 3 producer of the metal, Lonmin PLC, raised concerns that supply would be more limited than previously thought.

The most actively traded platinum contract, for October delivery, gained $39, or 2.8%, to settle at $1,435.20 a troy ounce on the New York Mercantile Exchange, the highest settlement price since July 13. Gold also gained, rising $12.60, or 0.8%, to settle at $1,619.20 an ounce on the Comex division of Nymex. Compiled from MORRISON SECURITIES PTY. LTD.