Earnings hope lifts stocks, S&P above key resistance

US stocks advanced as optimism about upcoming earnings and investor buying of the quarter's top performers lifted the S&P 500 above a key technical level.

The Dow Jones industrial average gained 84.54 points, or 0.70 percent, to end at 12,170.56. The Standard & Poor's 500 Index climbed 12.12 points, or 0.93 percent, to 1,309.66. The Nasdaq Composite Index rose 38.12 points, or 1.41 percent, to 2,736.42.

European shares rose to a two-week closing high, boosted by strong results from retailers, while a private poll suggested stocks were set to rise further on corporate earnings strength.

The pan-European FTSEurofirst 300 index of top shares closed up 1 percent at 1,123.52 points following early session falls on concerns about Portugal, after its parliament rejected planned austerity measures.

Japanese shares slipped, with a sell-off in Tokyo Electric Power Co and financial firms weighing on the broad Topix index as radiation leaks from a quake-stricken nuclear plant stifled any optimism on the global economy.

Market observers said the problems at the troubled power facility remain the key focus for investors, with the market in a narrow range as there have not been any major developments at the plant recently.

They also said that investors will continue to monitor the 9,500 level on the Nikkei as a key psychological threshold.

The benchmark Nikkei average fell 0.2 percent, or 14.46 points, to 9,435.01. The Topix slipped 0.8 percent to 853.95.