Wall Street shares hit 13-month highs as world stocks rally
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The major US stock indexes closed at 13-month highs Monday, boosted by strong US retail sales and an upbeat market sentiment in Asia.
AFP - Wall Street shares extended their rally Monday, hitting fresh 2009 highs as strong US retail sales and upbeat economic news from Asia helped reinforce sentiment that an economy recovery is on track.
The Dow Jones Industrial Average jumped 136.49 points (1.33 percent) to 10,406.96 in closing trades, a new 13-month high for blue chips.
Also hitting fresh yearly highs, the tech-heavy Nasdaq composite advanced 29.97 points (1.38 percent) to 2,197.85 and the Standard & Poor's 500 broad-market index added 15.82 points (1.45 percent) to a provisional close of 1,109.30.
Market action came after the US government said retail sales jumped 1.4 percent in October, well ahead of expectations, even though a large portion was from the volatile auto sector.
Patrick O'Hare at Briefing.com said the overall report was mixed but still shows growth in a segment that accounts for the lion's share of US gross domestic product, or economic activity.
He expected personal consumption to be "on a positive track as far as fourth quarter GDP is concerned."
Analysts said market sentiment was also boosted by positive economic news from Asia.
Leaders of the Asia-Pacific Economic Cooperation (APEC) forum, who together steer more than half the global economy, said after a weekend summit in Singapore that they would maintain hefty stimulus spending "until a durable economic recovery has clearly taken hold."
Japan announced Monday its best economic growth in more than two years during the latest quarter, boosting hopes the global economy is getting back on its feet after the worst recession in decades.