Retail, tech lead Wall Street rally before jobs data

US stocks closed sharply higher and the Nasdaq notched an eighth day of gains as improved labor market and retail sales data added to optimism a day before the critical June payrolls report.

The Dow Jones industrial average shot up 93.47 points, or 0.74 percent, to 12,719.49. The Standard & Poor's 500 Index gained 14 points, or 1.05 percent, to 1,353.22. The Nasdaq Composite Index climbed 38.64 points, or 1.36 percent, to 2,872.66.

European shares climbed to a five-week high as an encouraging US private sector jobs report and data showing US jobless benefits fell last week improved market sentiment and raised hopes of a sustained economic recovery.

The FTSEurofirst 300 index of top European shares ended 0.4 percent higher at 1,123.32 points after rising to a high of 1,132.44, the highest since early June.

Tokyo stocks snapped a seven-day winning streak as utilities tumbled after the government proposed stress tests on nuclear reactors, sparking fears their restarts may be delayed, but the 10,000 line on the Nikkei held, boosting hopes for further gains. The Nikkei shed 0.1 percent to 10,071.14, while the broader Topix index fell 0.4 percent to 870.48.