From MORRISON SECURITIES PTY. LTD:

U.S. STOCK MARKETS

Stocks rallied Tuesday as worries eased about Spain's rising borrowing costs and investors cheered a series of strong quarterly earnings reports from U.S. companies, shrugging off mixed U.S. economic data.

The Dow Jones Industrial Average climbed 194.13 points, or 1.5%, to 13115.54. The Standard Poor's 500-stock index gained 21.21 points, or 1.6%, to 1390.78.

The Nasdaq soared 54.42 points, or 1.8%, to 3042.82 and notched its biggest daily rise in a month. All 30 of the Dow's components pushed higher. Coca-Cola Co. rose 2.1%, reaching a nearly 14-year high, after the beverage giant reported first-quarter earnings and revenue that exceeded expectations, as both volumes and price gains bolstered results.

Johnson & Johnson was the Dow's biggest laggard, but still rose 0.3% after the health-care conglomerate reported first-quarter earnings that beat forecasts.

Technology-sector stocks led all 10 of the S&P 500's groups higher. Apple rose 5.1% and snapped a five-session streak of declines that saw the world's largest company shed more than $50 billion in market capitalization.

Yahoo shares rose 1.7% to $15.27 after hours after the online media giant reported first-quarter earnings rose a better-than-expected 28% as advertising revenue crept up, driven by improvement in its search business.

Goldman Sachs fell 0.7% after beating profit expectations in its first-quarter report. The investment bank's revenue fell less than feared from a year ago, but its results demonstrate the toll choppy markets have taken on the firm's operations.

Goldman also raised its quarterly dividend 31% to 46 cents a share. The International Monetary Fund Tuesday raised its outlook for global economic growth to 3.5% for the year, but urged stronger measures to fight Europe's debt crisis and called on many nations to support growth by slowing their near-term budget cuts.

In the U.S., data showed home construction fell for a second straight month in March, while the number of new-housing permits rose to its highest level since September 2008. Separately, industrial production was flat for the second straight month in March while capacity utilization slipped from February, signals that a key engine of the U.S. economy is stalling.

EUROPEAN STOCK MARKETS

European equities powered ahead Tuesday, driven by the results of a Spanish debt auction and positive global economic signals, but shares of Repsol SA tumbled on Argentina's move to seize control of YPF SA.

The Stoxx Europe 600 Index surged 2% to close at 259.45. France's CAC 40 index jumped 2.7% to 3,292.51, Germany's DAX 30 index was also up 2.7%, at 6,801, and the U.K.'s FTSE 100 index added 1.8% to 5,766.95.

Leading the Stoxx Europe index higher, heavyweight food group Nestle SA rose 1.3% as rival Danone SA reported strong first-quarter revenue. Danone's shares rose 2.9%.

Contributing to the positive sentiment, the International Monetary Fund raised its forecast for global economic growth in 2012 and 2013, citing improved financial conditions and unwinding of the financial crisis.

The IMF warned, though, that the recovery remains fragile and that another acute crisis in Europe remains the main risk to the global economy. The German ZEW indicator of investor sentiment showed an unexpected increase in April, the fifth straight monthly gain.

The indicator rose to 23.4 from 22.3 in March, beating economists' forecasts for a decline to 20.0. But even ahead of that markets were heading higher, he said, partly due to bargain hunters picking up stocks in Europe that have dropped significantly in recent days.

The yield on Spain's 10-year government bond fell 13 basis points to 5.89%. The yield on Italy's 10-year government bond fell one basis point to 5.48%. Italian stocks were among the best performers in Europe, with the FTSE MIB Italy index up 3.7% at 14,942.

Banco Popolare SC surged more than 9% and ENI SpA rose 2.6%. In Madrid, the IBEX-35 index surged 2.3% to 7,373.30. Standouts included shares of Banco Santander SA and BBVA SA, both up 3.7%.

However, shares of Spanish oil group Repsol SA tumbled more than 6% in the wake of the Argentine government's move to nationalize energy group YPF SA. YPF is majority-owned by Repsol. Elsewhere, banks rallied, with Societe Generale SA up 8.6% and BNP Paribas SA gaining nearly 7% in France. Commerzbank AG jumped nearly 6% and Deutsche Bank AG added 4.5% in Germany, while HSBC Holdings PLC rose 2.4% in the U.K.

ASIA-PACIFIC STOCK MARKETS

Asian stock markets ended mostly lower Tuesday amid lingering worries about Spain's debt troubles, while Chinese banks struggled after data showed foreign direct investment in mainland China continued to decline.

Hong Kong's Hang Seng Index lost 0.2%, China's Shanghai Composite index was down 0.9% and Taiwan's Taiex fell 1.9%. South Korea's Kospi fell 0.4%, while Japan's Nikkei Stock Average slipped 0.1%.

India's Sensex was up 1.1%. Data released Tuesday showed foreign direct investment into China fell 6.1% in March from the year-earlier period to $11.76 billion, reflecting the impact of the European debt crisis and slowing Chinese economic growth.

Chinese banks were among the notable losers. China Construction Bank Corp. dropped 1.1% and Bank of Communications Co. shed 0.2% in Shanghai. In Hong Kong, CCB lost 2%, while BoCom ended flat.

Chinese airline stocks extended their drop after both China Southern Airlines and China Eastern Airlines issued profit warnings recently. China Southern fell 1.5% and China Eastern gave up 1.9% in Shanghai; in Hong Kong, they dropped 3.5% and 3.9%, respectively.

Shares of SouthGobi Resources slumped 10% in Hong Kong after the company announced that its auditors Deloitte & Touche LLP resigned with effect from April 2. The company also said Mongolia has asked the company to suspend exploration and mining activity in the country, in relation with shares of Aluminum Corp. of China Ltd., or Chalco's, proposed takeover bid for the company. Chalco shares fell 1.6% in Hong Kong and 1% in Shanghai.

Automakers were among Japanese exporters that finished lower amid the yen's recent strength. Honda Motor fell 1.9% and Toyota Motor Corp. declined 0.9%.

COMMODITIES

Base metals closed mostly higher on the London Metal Exchange Tuesday, rising in line with European stock markets after broadly positive economic news around the globe helped to boost investor confidence.

New data showed a surge in U.S. building permits for March which are seen as a gauge of future demand and offset a drop in housing starts figures. Base metals are widely used by the construction industry, and prices are subsequently sensitive to news and forecasts on the sector.

Also contributing to the positive sentiment, analysts said, was the International Monetary Fund, which raised its forecast for global economic growth in 2012 and 2013 citing improved financial conditions and unwinding of the financial crisis.

Earlier in the day, a positive Spanish debt auction and an improvement in German economic sentiment had also helped to support base metal demand. LME three-month copper ended the PM kerb at $8,050 a metric ton, up $66, or 0.8%, from Monday's close.

U.S. crude futures settled up 1.2% Tuesday as investors looked to a coming pipeline reversal that is expected to bring U.S. oil in line with global prices.

The Seaway pipeline reversal, designed to help ease a supply glut in Cushing, Okla., that has been depressing U.S. prices, will begin delivering crude to the Gulf Coast refinery belt in a month, or two weeks earlier than expected.

Traders said the move will unlock the value of the landlocked U.S. benchmark, by making the crude available to Gulf Coast refineries. At the same time, the move cuts the value of the European benchmark, Brent crude, as competitive crudes become more plentiful in the region.

Light, sweet crude for May delivery on the New York Mercantile Exchange settled up $1.27 a barrel at $104.20, the highest price since April 2. ICE North Sea Brent settled 10 cents higher, at $118.78 a barrel.

Its premium to the U.S. benchmark was $14.58 a barrel at the settlement, the lowest level since Feb. 1. Gold futures ended slightly higher, helped by a softer dollar and gains in U.S. equities. The most actively traded contract, for June delivery, gained $1.40, or 0.1%, to settle at $1,651.10 a troy ounce on the Comex division of the New York Mercantile Exchange.