President Barack Obama vows to spur US economy reacts World Stock

BANGKOK: World stock markets were higher Wednesday amid successful debt sales in Europe and after President Barack Obama delivered his annual State of the Union speech, vowing to create jobs and spur growth in the world's No. 1 economy.

Oil prices hovered near $87 a barrel, consolidating losses after falling more than 4 percent in less than a week on mixed economic news and the possibility of increased OPEC production. In currencies, the dollar was slightly down against the yen and the euro.

European indexes were higher following successful debt sales by Spain and the eurozone's bailout fund. Britain's FTSE 100 was up 0.9 percent to 5,967.25. Germany's DAX was 1 percent higher to 7,134.69 and France's CAC-40 was up 0.9 percent to 4,057.48.

Wall Street was also headed higher, with Dow futures rising 0.3 percent to 11,956 and S&P 500 futures up 0.4 percent to 1,292.50.

Hong Kong's Hang Seng gained 0.2 percent to 23,842.24, although notable stocks that sank included Macau casino operator SJM Holdings _ currently embroiled in an ownership dispute between bnaire founder Stanley Ho and relatives _ which tumbled almost 5 percent.

Japan's Nikkei 225 stock average closed down 0.6 percent at 10,401.90. Indexes in New Zealand and the Philippines were also down.

But South Korea's Kospi index rose 1.1 percent to 2,110.46 after news the country's economy, Asia's fourth-largest, grew at its fastest pace in eight years in 2010 even though the expansion slowed in the final quarter. Gross domestic product advanced 6.1 percent last year, marking the best performance since a 7.2 percent surge in 2002.

China's Shanghai Composite index climbed 1.2 percent to 2,708.81. The Shenzhen Composite Index for China's smaller, second market added 1.6 percent to 1,154.42. Markets in Singapore, Taiwan and Indonesia also rose. Australia's stock market was closed for a public holiday.

Investors seemed to regain confidence in the U.S. economy following Obama's address and an improvement in economic indicators that came on the heels of a December rally on Wall Street.

Another boost to confidence happened Tuesday, when Spain auctioned euro 2.2 bn in short-term debt at much lower interest rates and the eurozone rescue fund effortlessly sold euro 5 bn in five-year bonds to fund its first contribution to a loan for Ireland. The news calmed financial markets.

Still on the radar, however, were concerns that China would soon take more aggressive steps to cool its galloping economy and tamp down inflation.