The Dow Jones advanced for the first time this week as positive economic data buoyed investors. A sell-off of tech stocks saw the NASDAQ dip below the line.
In economic news, new claims for unemployment increased slightly last week, however continuing claims dipped for the first time in almost five months.
Meanwhile, an index on regional manufacturing climbed to negative 2.2 after being negative 22.6 the previous month. This substantially beat economists' expectations.
The Dow Jones rose 58.42 points, or 0.69%, to 8,555.60, the S&P’s 500 gained 7.66 points, or 0.84%, to 918.37 and the NASDAQ shed 0.34 points, or 0.02%, to 1,807.72.
The financials regained some of their recent losses. Bank of America, JPMorgan and Wells Fargo advanced 4.9%, 4.4% and 2.6% respectively.
Goldman Sachs, Morgan Stanley and Citigroup added 2.4%, 2% and 1.6%, while American Express gained 0.6%.
American International Group jumped 5%.
Tech stocks performed poorly, with Microsoft, Google and Yahoo! shedding 0.8%, 0.3% and 1.7%. Chipmaker Intel finished 1.7% below the line.
Apple bucked the trend to put on 0.2%, while IBM edged 0.6% lower.
Energy stocks fell despite a rise in the price of crude. Of the majors, Chevron slipped 0.6%, while ConocoPhillips added 0.7%.
Exxon Mobil was flat.
Retailers were mainly in the red. Costco and Target declined 0.8% and 0.1%, while Wal-Mart advanced 0.3%.
Machinery manufacturer Caterpillar continued its slide with a 2.1% drop. Deere and Co lost 1.2%.
NYMEX light crude oil for July delivery rose US34c to US$71.37 a barrel.
COMEX gold for August delivery fell US$1.40 to US$934.60 an ounce.
European Markets
European stocks closed higher Thursday despite news of a fall in British retail sales. Financials made the most gains after reversing early losses.
In economic news, Britain’s public deficit grew to a record STG19.9 billion ($A41.1 billion) in May.
The UK benchmark FTSE 100 closed 2.40, or 0.06% higher at 4,280.86. France’s CAC40 gained 32.92, or 1.04% to 3,194.06, while the German DAX added 37.50, or 0.78%, to 4,837.48.
UK banks Lloyds, Royal Bank of Scotland and Standard Chartered rose 3.3%, 2.7% and 2.6%. Barclays and HSBC lost 0.5% and 0.6%.
Societe Generale and BNP Paribas added 2.2% and 1.8%, while Deutsche Bank climbed 3.5%.
The major miners were mixed as most metal prices made small gains. Antofagasta fell 1%, while Anglo American and Xstrata put on 0.4% and 1.7%.
Aussie miner Rio Tinto sank 4.9%, while peer BHP Billiton edged 0.2% higher.
Energy stocks BP, BG Group and Royal Dutch Shell dipped 1.2%, 1% and 0.5%. Total added 0.6%.
Britain's retail sales sank 0.6% in May from the previous month. Tesco edged 0.1% lower.
Japanese Markets
Japanese stocks continued to drop, with the broader market having only closed higher one day so far this week. Car and electronics makers fell as the value of the yen reached two-week highs.
The Nikkei 225 lost 137.13 or 1.39% to 9,703.72.
Automaker Honda shed 2.6%, while Mitsubishi Motors advanced 3.3% on reports it plans to develop a cheaper electric vehicle.
Mitsubishi’s electric cars parts supplier Meidensha Corp spiked 6.2%.
Electronics makers Sony and Canon declined 3.1% each.
Trading company Mitsubishi Corp sank 4.2%. Mizuho Financial Group and Mitsubishi UFJ lost 4% and 2%.
Nippon Steel and Mitsui Mining and Smelting shed 4.2% and 3.2%, while shipping line Kawasaki Kisen Kaisha fell 4.4%.
Hong Kong Markets
Hong Kong stocks fell for the fourth consecutive day as the market closed at a three week low. Financial and property stocks led the sell-off.
The Hang Seng shed 307.94, or 1.70%, to 17,776.66.
Banks ICBC, Bank of China and HSBC shed 3.6%, 2.9% and 1.3% respectively. China Construction Bank was 2.6% cheaper.
Aluminium Corp of China and Jiangxi Copper declined 2.9% and 1.7%.
China’s largest maker of extruded aluminium products China Zhongwang Holdings spiked 8.6% after an analyst gave the stock a buy recommendation.
Pingdingshan Tianan Coal Mining and China Shenhua Energy jumped 10% and 5.5%. The former announced a bonus share plan.
Agricultural products maker Chaoda Modern Agriculture sank 17.6% after revealing it plans to raise capital by selling shares at a discount.
