* Better-than-expected JPMorgan results lift stocks
* Dollar, yen gain as fresh data renews economic worries
* Oil edges up towards $50; mixed data curbs gains
* Bonds retreat as equities rise
(Recasts, updates U.S. markets; changes dateline, previous
LONDON)
By Herbert Lash
NEW YORK, April 16 (Reuters) - Global stocks rose and bond
prices fell on Thursday after better-than-expected results
from JPMorgan and regional U.S. manufacturing data that
pointed to a less drastic contraction gave investors a reason
to cheer.
European shares rose to a two-month high, also boosted by
the outlook given by cellphone maker Nokia, but U.S. equity
gains were muted, with the Dow up slightly as bleak data from
around the world reminded investors that any signs of economic
recovery were still tentative.
The Nasdaq and the S&P 500, however, got a lift from Nokia
and other techs, as well as from JPMorgan's earnings.
The dollar and yen rose against the euro and while oil
edged higher toward $50 a barrel, gains were limited because
of mixed U.S. and Chinese economic data.
China posted its weakest quarter for growth since
quarterly records began in 1992, while weak U.S. housing data
and record jobless claims reflected the downturn's tenacity.
In a harsh reminder the recession is not over, General
Growth Properties Inc <GGP.N>, the second-largest U.S. mall
owner, declared bankruptcy in the biggest real estate failure
in U.S. history.
But a slew of positive news on the technology front and
JPMorgan's <JPM.N> earnings lifted Wall Street's S&P 500 and
the Nasdaq, as well as European equities. JPMorgan's stock
rose 2.4 percent.
The world's top cellphone maker Nokia <NOK1V.HE><NOK.N>
said a drop in demand for its products was stabilizing,
sending its shares up 9 percent in New York. Video game
publisher Activision Blizzard Inc <ATVI.O> said first-quarter
results were better than expected, lifting its shares 3.1
percent.
"Your more cyclical, economically sensitive areas have
been leading the way," said Henry Smith, chief investment
officer at Haverford Trust Co in Philadelphia. "That gives us
further confidence in making the claim the economy has
bottomed, and that markets are looking for improvement in the
economy."
After midday, the Dow Jones industrial average <> was
up 10.03 points, or 0.12 percent, at 8,039.65. The Standard &
Poor's 500 Index <.SPX> was up 4.22 points, or 0.50 percent,
at 856.28.. The Nasdaq Composite Index <> was up 21.32
points, or 1.31 percent, at 1,648.12.
In Europe, the FTSEurofirst 300 <> index of top
shares ended up 1.8 percent at 802.02 points, the highest
closing level since Feb. 11.
Results from JPMorgan and Nokia boosted European markets,
as did Swiss drugmaker Roche <ROG.VX>, which brushed off the
downturn in the first quarter. Roche posted a 7 percent rise
in sales and sounded a confident note for the full year.
Roche gained 1.8 percent.
"We are getting a much better view in terms of what's
happening at the corporate level," said Henk Potts, strategist
at Barclays Stockbrokers.
"While it's not positive, it's certainly not as gloomy as
many market participants had feared," Potts said.
U.S. and euro zone government bond prices fell after the
upbeat corporate results boosted equities and cut the appetite
for less risky fixed-income assets.
U.S. Treasury prices fell after the Federal Reserve
purchased fewer inflation-protected bonds than it has in
recent operations, buying just $1.5 billion of the $15.6
billion submitted by dealers.
The Bund market was also pushed lower by more than 11
billion euros ($14.48 billion) of new French and Spanish bond
issuance, which met good demand, easing immediate fears about
oversupply as governments fund an array of stimulus packages.
A contraction in U.S. factory activity in the mid-Atlantic
region slowed in April, according to a survey by the Federal
Reserve Bank of Philadelphia, helping push bond prices down.
"The industrial recession continues, though at a less
intense pace than in the early part of the year," said Ian
Shepherdson, chief U.S. economist at High Frequency
Economics.
The benchmark 10-year U.S. Treasury note <US10YT=RR> fell
15/32 in price to yield 2.82 percent. The 2-year U.S. Treasury
note <US2YT=RR> fell 2/32 in price to yield 0.89 percent.
But the U.S. dollar rose against a basket of major
currencies, with the U.S. Dollar Index <.DXY> up 0.28 percent
at 85.136.
The euro <EUR=> fell 0.20 percent to $1.3193, but against
the yen, the dollar <JPY=> slipped 0.10 percent to 99.29.
"The general theme is a slight rise in risk aversion that
was triggered by the disappointing Chinese GDP data and soft
euro-zone economic figures overnight," said Omer Esiner, forex
market analyst at Ruesch International in Washington.
U.S. light sweet crude oil <CLc1> rose 38 cents to $49.64
a barrel.
Spot gold prices <XAU=> fell $12.05 to $878.55 an ounce.
Asian stocks pulled back from a six-month high, with the
MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> gaining 0.08 percent.
Japan's Nikkei average <> rose as much as 3.3 percent
at one point but ended the session up just 0.1 percent.
(Reporting by Edward Krudy, Wanfeng Zhou and Pedro Nicolaci
da Costa in New York; Atul Prakash, David Sheppard, Catherine
Bosley and Emelia Sithole-Matarise in London; Writing by
Herbert Lash; Editing by Jan Paschal)
