US markets

U.S. stocks climbed Friday, concluding a second-straight week of gains at fresh 21/2 year closing highs after Egyptian President Hosni Mubarak stepped down. The Dow Jones Industrial Average rose 43.97 points, or 0.36%, to 12273.26, its highest close since June 13, 2008. The measure rose 1.5% during the week and posted its strongest two week performance since June with a 3.8% jump over the period. The Nasdaq Composite rose 18.99, or 0.68%, to 2809.44, its highest close since Nov. 6, 2007. It climbed 1.45% during the week.

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The Standard & Poor's 500-stock index added 7.28, or 0.55%, to 1329.15, its highest close since June 19, 2008. It gained 1.39% on the week. The gains came after Egypt's embattled president succumbed to the demands of hundreds of thousands of his compatriots Friday and resigned from office, bringing to an end three decades of autocratic rule. The announcement was delivered by Vice President Omar Suleiman in a brief statement on state television. Financials led Friday's ascent as mortgage insurers surged on a government proposal to shrink the size of the Federal Housing Administration, a government-run competitor to the private mortgage insurance industry. Genworth Financial jumped 4.4%, MGIC Investment surged 9.6%, and PMI Group climbed 2.8%. Among other stocks in focus, Nokia tumbled 14% after the handset maker said it will adopt Windows Phone as its main smartphone platform, as part of a broad strategic partnership with Microsoft. In economic data, the U.S. trade gap widened in December, with the full-year trade deficit registering its biggest percentage increase in 10 years on the back of a record shortfall in trade with China.

European markets

European stocks reversed losses to end higher Friday, buoyed by news that Hosni Mubarak has resigned as president of Egypt, putting an end to his 30-year regime. The Stoxx Europe 600 Index gained 0.4% to end at 287.99. It earlier hit an intraday low of 284.58. The index rose 0.7% for the week and it is up nearly 3% so far this month. Bucking the positive trend, shares of mobile giant Nokia Corp. plunged more than 14% in Helsinki. The company said it will adopt Microsoft's Windows Phone as its main smartphone platform and will forge other close ties with the U.S. software giant.

The French CAC 40 rose 0.2% to 4,101.31, as shares of Alcatel-Lucent SA rallied 7.2%, extending their strong gains from the previous session when the firm reported a big jump in profit. Shares of Michelin SCA advanced 3.7% after the tire maker reported a rebound in earnings for 2010 and said it started the succession process to replace its managing general partner. In Germany, BMW AG rose 2.3% and Daimler AG rallied nearly 2%, helping boost the DAX 30, which gained 0.4% to 7,371.20. ThyssenKrupp AG shares dropped 2.7%. The U.K.'s FTSE 100 index closed up 0.7% at 6,062.90. Among the top gainers, Tullow Oil PLC rallied 3.8%. Meanwhile, Barclays PLC shares dropped 0.7%.

Asian markets

Asian markets ended mixed Friday, as heightened concerns over Egypt after President Hosni Mubarak defied calls to quit weighed on investors' risk appetite, with shares in South Korea falling amid inflation concerns. South Korea's Kospi lost 1.6%, declining for a fourth straight session, and Taiwan's Taiex slumped 2.6%. Hong Kong's Hang Seng Index added 0.5% and China's Shanghai Composite rose 0.3%. Japanese markets were closed for a holiday. In Seoul, shares slid on continued foreign selling and expectations that the Bank of Korea will raise its key policy rate next month despite the central bank holding the rate steady at 2.75% earlier Friday.

Insurers, which benefit from higher rates, fell on disappointment with the Bank of Korea's decision, with Samsung Life shedding 2.8% and Meritz Fire & Marine losing 3.4%. Shares in Hong Kong and China rose amid bargain buying. Shanghai listed shares of Anhui Conch Cement gained 3.8% and its Hong Kong shares rose 2.7%. On the mainland, bargain hunting boosted property developers after heavy losses in recent sessions. Poly Real Estate Group ended 2.4% higher.

Base metals

Base metals ended mostly higher on the London Metal Exchange Friday as weekend book squaring steadied prices in late afternoon trade. The market focus was on Egypt, where Hosni Mubarak stepped down as president and handed over power to the army. The news drove Brent oil and gold lower, but reaction to the announcement is yet to be realized across the base metals, Sucden said in a trading note. Market players warned that, with prices still at elevated levels, investor nervousness is likely to cause some volatility early in the coming week. Crude futures settled at a two month low Friday as Egyptian President Hosni Mubarak's resignation calmed fears that growing unrest in the country would disrupt key oil supply routes. Light, sweet crude for March delivery settled $1.15, or 1.3%, lower at $85.58 a barrel on the New York Mercantile Exchange, the lowest closing price since November. Brent crude on the ICE futures exchange settled 56 cents higher at $101.43 a barrel. Gold futures finished lower as traders showed little concern about political developments in Egypt. The thinly traded February delivery contract settled down 0.2%, or $2, at $1,359.90 a troy ounce on the Comex division of the New York Mercantile Exchange. The most actively traded contract, for April delivery, also slipped 0.2%, settling down $2.10 at $1,360.40 a troy ounce.
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