Global Stocks Rise; Nikkei Gains 1.3%

TOKYO -- World stock markets rose Friday after big gains on Wall Street as China's expression of confidence in Europe's ability to restore financial stability eased worries about the region's debt crisis.

The show of faith in Europe let markets resume a rally that stalled late Wednesday following a report that China was considering cutting its exposure to European debt. The agency that manages China's $2.5 trillion in foreign reserves denied the report and said Europe would always be one of its major investment destinations.

The euro recovered as a result, climbing to 113 yen levels from around 110 yen the previous day and gained against the dollar, surmounting $1.2400 in Asian trade. Oil, meanwhile, jumped above $75 a barrel.

In Europe Friday, Britain's FTSE-100 was up 0.7%, Germany's DAX gained 0.6% and France's CAC-40 added 0.5%.

Futures pointed to a slightly higher open Friday on Wall Street.

Despite a triple dose of sobering economic news, Japan's Nikkei 225 stock average jumped 123.26 points, or 1.3%, to 9,762.98 as investors bought exporters including tech companies and automakers.

Japan's government said Friday that unemployment rose for the third straight month in April, prices kept sliding and household spending fell.

Hong Kong's Hang Seng, meanwhile, advanced 1.7% to 19,766.71. China bucked the trend with the main Shanghai index off less than 0.1%.

On Thursday in New York, the Dow Jones Industrial Average shot up 2.9 % to 10,258.99 after China reassured investors it doesn't plan to sell the European debt it holds. The S&P 500 index rose 3.3% to 1,103.06, and the Nasdaq composite index climbed 3.7% to 2,277.68.

In currencies, the dollar rose to 91.23 yen from 90.98 yen. The euro gained to $1.2420 from $1.2362.

Benchmark crude for July delivery was up 98 cents at $75.52 in electronic trading on the New York Mercantile Exchange.

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