Dow rises for seventh day, fuelled by McDonald's

The Dow notched a seventh straight day of gains, but light volume suggested that investors don't believe the more than five-month rally has the legs to keep going.

The Dow Jones industrial average was up 71.52 points, or 0.59 percent, at 12,233.15. The Standard & Poor's 500 Index was up 5.52 points, or 0.42 percent, at 1,324.57. The Nasdaq Composite Index was up 13.06 points, or 0.47 percent, at 2,797.05.

European shares slipped back from 29-month highs, after China increased interest rates again to fight stubbornly high inflation, raising concerns about economic growth.

The pan-European FTSEurofirst 300 index of top shares fell 0.1 percent to close at 1,176.28 points, having hit its highest close since September 2008 in the previous session.

Japan's Nikkei average hit a new nine-month peak, extending gains for a third straight day as investors pile into riskier assets in developed economies on hopes for a steady economic recovery.

Japan, the best-performing Asian market this year with a gain of around 4 percent, has benefited from a shift into developed markets and strong earnings for October-December.

The benchmark Nikkei ended up 0.4 percent or 43.94 points at 10,635.98. It rose as high as 10,648.80, its highest since May 6.

The broader Topix added 0.4 percent to 944.00.