S&P closes at 29-month high; techs, commods lead

The S&P 500 closed at a 29-month high led by gains in tech and commodity shares, as investors largely ignored the US Federal Reserve's lukewarm economic assessment.

The Dow Jones industrial average edged up 8.25 points, or 0.07 percent, to end at 11,985.44. The Standard & Poor's 500 Index advanced 5.45 points, or 0.42 percent, to 1,296.63. The Nasdaq Composite Index gained 20.25 points, or 0.74 percent, to 2,739.50.

European equities hit a one-week closing high as the US President Barack Obama's proposal of corporate tax cuts boosted market sentiment, while stronger metals on hopes of improving demand helped miners.

The FTSEurofirst 300 index of top shares finished 0.8 percent higher at 1,152.71 points -- the highest since Jan. 18. The index, which fell 0.6 percent in the previous session, is up 2.8 percent this year after gaining 7.3 percent in 2010.

Japan's Nikkei average dropped 0.6 percent, with resource shares losing ground after a rate hike in India and a contraction in Britain's economy led to a pull-back in commodity prices.

The benchmark Nikkei closed down 0.6 percent, or 62.52 points, at 10,401.90. The broader Topix index fell 0.7 percent, or 6.64 points, to 922.64.