US stocks hit fresh 2009 highs in a broad-based rally following economic data that suggested a stronger-than-anticipated global recovery.

The Dow Jones industrial average gained 108.3 points, or 1.1 percent, to close at 9,791.71. The Standard & Poor's 500 Index added 16.1 points, or 1.5 percent, to 1,068.75. The Nasdaq Composite Index rose 30.5 points, or 1.4 percent, to close at 2,133.15.

The FTSEurofirst 300 index of top European shares rises 1.3 percent to hit the 1,000-mark for the first time since October 2008, boosted by renewed optimism of a quicker global economic recovery.

The FTSEurofirst 300 has rallied nearly 55 percent since hitting a record low in early March, but is still down 14 percent from its level in mid-September 2008 before the collapse of Lehman Brothers.

Japan's Nikkei average rose 0.5 percent as Canon Inc and other exporters gained, bolstered by optimism about the US economy after strong retail sales data and a halt in the yen's rise against the dollar.

But gains were pared by nervous investors, who were waiting to see the policies of Japan's new government after Yukio Hatoyama was voted in as prime minister and prepared to announce his cabinet after a resounding Aug. 30 election win.

The benchmark Nikkei rose 53.15 points to 10,270.77, though the broader Topix fell 0.1 percent to 931.43, dragged lower by bank shares.