Fireworks wrap up Wall Street's best week in 2 years

US stocks started July with a bang with Wall Street scoring its best week in two years on strong manufacturing data that eased concerns about slowing growth.

The Dow Jones industrial average was up 168.43 points, or 1.36 percent, at 12,582.77. The Standard & Poor's 500 Index was up 19.03 points, or 1.44 percent, at 1,339.67. The Nasdaq Composite Index was up 42.51 points, or 1.53 percent, at 2,816.03.

European shares hit a one-month high to record their best week in 10 months after US manufacturing sector growth showed a pick-up in June, raising hopes that the recovery in the world's largest economy remained on track.

The FTSEurofirst 300 index of top European shares ended 0.8 percent firmer at 1,119.36 points, the highest close in one month. After falling for eight straight weeks, the index rose 3.6 percent this week, its best performance in 10 months.

The Nikkei share average climbed to a seven-week high but low trading volume and the index's failure to decisively rise above its 200-day average suggested investors are not convinced it will break from its post-quake range anytime soon.

The benchmark Nikkei closed up 0.5 percent at 9,868.07, just a hair above its 200-day moving average of 9,866. The broader Topix also rose 0.5 percent, to 853.86.