* World shares rise as U.S., Chinese trade data beat
* Yen gains sharply, Draghi's comments weigh on euro
* Oil rises toward $119 a barrel on China data, Mideast
By Herbert Lash
NEW YORK, Feb 8 Global equity markets rose on
Friday, lifted by strong Chinese and U.S. trade data, while the
yen jumped after Japan's finance minister said the currency's
recent drop had gone too far, too fast.
China's exports and imports surged and new lending soared in
January, signaling a solid recovery, while rising exports and
less imported oil helped push the U.S. trade deficit to its
narrowest point in nearly three years in December.
The narrower U.S. trade gap suggested the economy did much
better in the fourth quarter than initially estimated, when an
advance reading showed it contracted at a 0.1 percent annual
rate in part because of a decline in inflation-adjusted exports.
The Chinese trade data lifted optimism about global growth
prospects and helped boost equity markets and prices of crude
oil and copper.
MSCI's all-country world equity index rose
0.5 percent to 355.72, while shares in Europe rebounded nearly
1.2 percent after a fall on Thursday wiped out the year's gains.
The Dow Jones industrial average was up 62.14 points,
or 0.45 percent, at 14,006.19. The Standard & Poor's 500 Index
was up 7.28 points, or 0.48 percent, at 1,516.67. The
Nasdaq Composite Index was up 26.02 points, or 0.82
percent, at 3,191.15.
The FTSEurofirst 300 index of leading European
shares rose 1.17 percent to 1,161.66, while the euro zone's
blue-chip Euro STOXX 50 index advanced 0.99 percent.
"The sentiment is there for the market to go higher," said
Caroline Vincent, European equities fund manager at Cavendish
The yen also jumped as doubts rose on whether the next
governor of the Bank of Japan will ease policy aggressively.
The yen, which fell to its low against the euro since April
2010 and the lowest against the dollar since May 2010 on
Wednesday, got a boost from Finance Minister Taro Aso's comments
that the yen's slide from 78 to 90 per dollar was steeper than
The dollar fell against the yen to 92.15 yen and was
last trading at 92.38 yen, down 1.4 percent.
Brent crude oil rose toward a nine-month high above $118 a
barrel on the robust Chinese trade data, which augurs well for
fuel demand, while supply worries stemming from tensions in the
Middle East have also supported prices.
Brent gained $1.42 to $118.66 a barrel, and U.S.
crude futures rose 58 cents to $96.41.
Treasury prices fell. The benchmark 10-year U.S. Treasury
note was down 7/32 in price to yield 1.9823 percent.