Global stocks rally on data, Greek hopes

US stocks traded higher on data showing US jobless benefits claims unexpectedly fell to a near four-year low last week and US housing starts for January rose more than expected.

The Dow Jones industrial average rose 124.95 points, or 0.98 percent, to 12,905.90, while the Standard & Poor's 500 Index gained 14.32 points, or 1.07 percent, to 1,357.55. The Nasdaq Composite Index was up 40.60 points, or 1.39 percent, at 2,956.43.

European shares recovered in late session to end slightly higher as upbeat US macroeconomic figures and news that Greece had moved closer to securing an international bailout prompted investors to return back to equities.

The FTSEurofirst 300 index of top European shares closed 0.1 percent higher at 1,076.90 points after falling to 1,064.64 earlier in the day.

Japan's Nikkei stock average retreated from a six-month high in choppy trade, but sentiment remained upbeat on the back of easing steps from the Bank of Japan that have weakened the yen.

The benchmark Nikkei closed down 0.2 percent at 9,238.10, with the cash market largely shrugging off signs that a second bailout for Greece may be delayed. The Nikkei volatility index surged 6.7 percent, as investors bought protection against a sharp pull back.

The broader Topix slipped 0.3 percent to 800.25. Nearly 2.5 billion shares changed hands, down from a six-month high of 2.91 billion shares the previous session.