Akhir 25, 1432 H/March 30, 2011, SPA -- World stocks rose to near three-week highs on Wednesday and U.S. stocks climbed in early trade as optimism about potential gains in the coming quarter eclipsed concerns about Japan's nuclear crisis, according to Reuters. Wall Street was also boosted by data that showed solid gains in private sector jobs in March and by merger and acquisition activity. The yen slipped to a 10-month low versus the euro and was broadly weaker as recent hawkish comments from euro zone and U.S. officials contrasted with Japan's loose monetary policy stance. "It does seem as if markets are now keen to try and turn the page," said Ben Potter, analyst at IG Markets. Although the ongoing unrest in Libya, which has shut down oil exports from the OPEC producer, and Japan's earthquake and nuclear are still affecting financial markets in a big way, investors appeared ready to move on from these crises. "There is...appetite to speculate on these outcomes for now," Potter said. Some investors continued to seek safe havens, driving up the price of gold about 1 percent. Gains were capped by expectations that monetary policy in Europe and the United States may tighten. Recent hawkish comments from the euro zone and from U.S. officials that have contrasted with Japan's loose monetary policy stance drove the yen to 10-month low versus the euro of 117.28 yen. The euro was seen climbing further on expectations the European Central Bank will start raising interest rates as early as April. Against the dollar, the yen fell to a near three-week low at 83.19 yen. "We've had comments from the Fed and a shift in sentiment towards the U.S. policy from a rate perspective that has really pushed U.S.-Japan yield differentials, driving the dollar higher," said Mitul Kotecha, head of global FX strategy at Credit Agricole in Hong Kong. The market's focus on rate differentials benefited higher-yielding currencies including the Australian dollar, which traded at $1.03090, near a 29-year high of $1.0334 hit earlier in the global trading day. Oil prices fell, with U.S. crude losing almost half a percent to hover below $104.50 a a barrel, hurt by swelling crude inventories in the United States and expectations that the Obama administration will set a long-term target to cut oil imports. -- SPA
