Dow transports hit record, lifting Wall Street

The Dow Jones transports closed at an all-time high, leading US stocks higher and signaling more gains due to its role as a touchstone of economic demand.

The Dow Jones industrial average rose 72.35 points, or 0.57 percent, to 12,763.31. The Standard & Poor's 500 Index added 4.82 points, or 0.36 percent, to 1,360.48. The Nasdaq Composite Index advanced 2.65 points, or 0.09 percent, to 2,872.53.

European shares rose to an eight-week closing high, boosted by strong results from some companies including Suez Environnement and on hopes the US central bank will support the economy.

The pan-European FTSEurofirst 300 index of top shares closed up 0.4 percent at 1,153.70 points, to close at the highest level since early March, but volume was only 95 percent of its 90-day average ahead of a four-day holiday weekend in the UK.

Tokyo stocks climbed 1.6 percent to their highest level since last's month earthquake, helped by better-than-expected domestic earnings and strength in US shares after the Federal Reserve pledged to hold short-term rates near zero.

The benchmark Nikkei average closed the day up 157.90 points at 9,849.74 - the highest since March 11. The broader Topix rose 11.98 points or 1.4 percent to 851.85.