Global stock markets surged on Thursday to their highest levels since January, as some upbeat corporate earnings added to investors' hopes that a stabilization of the ailing world economy may finally be underway.
Asian stocks outside Japan led the way, scaling six-month peaks and markets such as Taiwan recorded their biggest one-day gain in 19 years. Indian markets were closed due to assembly election in Mumbai, India.
Global market sentiment was buoyed after the U.S. Federal Reserve's latest policy statement on Wednesday said the economic outlook was improving while it vowed to keep interest rates at historic lows for longer and retain a super-easy money stance.
The latest U.S. data showed an unexpected fall in new jobless claims, although consumer spending also fell for the first time in three months.
Banking and insurance stocks gained, benefiting from positive sector research that forecast most UK banks to emerge from 2009 with a profit. Barclays shares surged 11 percent and Royal Bank of Scotland rose 16 percent.
But the shift in investment gears from super-safe assets into relatively riskier, higher-yielding assets has been gaining traction through the second-quarter so far.
"There is a feeling that the Armageddon story is off, albeit it at the price of a generational collapse in fiscal prudence," Alan Ruskin, economist at RBS said in a note to clients.
Apart from the surge in equity markets, the rise in risk appetite could be seen across global prices.
The dollar slid as investors shifted funds into higher-yielding currencies though it pared losses after hitting a three week low against a basket of currencies.
Oil prices rose towards $52 a barrel a two-week high in response to a more optimistic view on the world economy.
Asian stocks outside Japan led the way, scaling six-month peaks and markets such as Taiwan recorded their biggest one-day gain in 19 years. Indian markets were closed due to assembly election in Mumbai, India.
Global market sentiment was buoyed after the U.S. Federal Reserve's latest policy statement on Wednesday said the economic outlook was improving while it vowed to keep interest rates at historic lows for longer and retain a super-easy money stance.
The latest U.S. data showed an unexpected fall in new jobless claims, although consumer spending also fell for the first time in three months.
Banking and insurance stocks gained, benefiting from positive sector research that forecast most UK banks to emerge from 2009 with a profit. Barclays shares surged 11 percent and Royal Bank of Scotland rose 16 percent.
But the shift in investment gears from super-safe assets into relatively riskier, higher-yielding assets has been gaining traction through the second-quarter so far.
"There is a feeling that the Armageddon story is off, albeit it at the price of a generational collapse in fiscal prudence," Alan Ruskin, economist at RBS said in a note to clients.
Apart from the surge in equity markets, the rise in risk appetite could be seen across global prices.
The dollar slid as investors shifted funds into higher-yielding currencies though it pared losses after hitting a three week low against a basket of currencies.
Oil prices rose towards $52 a barrel a two-week high in response to a more optimistic view on the world economy.
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