European Markets Trim Gains, Wall Street Slips

Oil has jumped more than 100 percent in three months, alongside the rally in stock markets, as traders have cheered news showing the worst of a severe U.S. recession is likely over. At the same time, they have brushed off data — such as a 9.4 percent U.S. unemployment rate in May — that suggest crude demand will remain weak.

Benchmark crude for July delivery was up $1.12 at $71.13 in European electronic trading on the New York Mercantile Exchange. On Tuesday, it jumped $1.92 to close at $70.01.

Earlier in Asia, Hong Kong's Hang Seng surged 727.17, or 4 percent, to 18,785.66, while Japan's Nikkei 225 stock average gained 204.67 points, or 2.1 percent, to 9,991.49.

In South Korea, the Kospi advanced 3.1 percent to 1,414.88, Australia's benchmark climbed about 2.3 percent, while Shanghai's main index rose 1 percent.

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AP business writers Pan Pylas in London and Jeremiah Marquez in Hong Kong contributed to this report.