Friday, March 23, 2012

Wall Street bounces back as European shares suffer worst week

US stocks rose in light volume on Friday, buoyed by rising energy and basic materials shares, as the S&P 500 kept showing resilience even as it posted its second negative week so far this year.

The Dow Jones industrial average gained 34.59 points, or 0.27 percent, to 13,080.73 at the close. The S&P 500 Index rose 4.33 points, or 0.31 percent, to 1,397.11. The Nasdaq Composite added 4.60 points, or 0.15 percent, to 3,067.92.

European shares closed fractionally lower to record their steepest weekly loss since the start of the year as weak economic data from China and the United States helped bring a four-month rally to a halt.

The pan-European FTSEurofirst 300 closed 0.1 percent lower at 1,079.42 points, taking its loss to 2.5 percent for the week, which was marred by weak factory activity data in China and disappointing housing indicators in the United States.

Japan's Nikkei average had its biggest one-day percentage fall in two months today after data pointed to slowing factory activity in China and the euro zone's two largest economies and sparked fresh concerns over global economic growth.

Fears of slower growth lifted the yen, further weighing on Japanese exporters. Toyota Motor Corp lost 2 percent, Honda Motor Co Ltd slid 2.9 percent and Sony Corp fell 3.1 percent.

The benchmark Nikkei lost 1.1 percent to 10,011.47. For the week, it suffered a 1.2 percent loss, snapping a six-week winning streak. The broader Topix declined 1.1 percent today to 852.53.