US markets gain on positive economic data

ALSO READ See how Asian markets are doing

The US markets broke the 3-day losing streak on speculations that Japan will control the nuclear crisis. The CBOE volatility index fell 9% versus 20% on Wednesday. Positive economic data also provided a fresh impetus to the markets.

Dow Jones Industrial Average added 1.39% or 161.29 points at 11774.59. Nasdaq Composite gained 0.73% or 19.23 points at 2636.05. Standard & Poor's 500 rose 1.34% or 16.84 points at 1273.72.

In economic data, February consumer price index rose 0.5% against an increase of 0.4% in January led by energy and food prices.

Initial jobless claims for the March 12 week fell 16,000 in-lines with market expectations to 3.85 lakh. The 4-week average fell to its lowest levels since July 2008.

The Philadelphia Fed survey index jumped more than 16-1/2 points in the March reading to 40.3 to indicate month-on-month growth.

In the other big news this morning the United Nations authorized military strikes to curb Libyan leader Muammar Gaddafi and approved no fly zone on Libya. Brent prices spike to above USD 116 levels. Traders are watching Saudi Arabian king Abdullah's address to his people today as a possible catalyst for crude prices.

As a result of this intervention the yen retreated from its highs and the dollar spiked about 2 yen to above the 81 yen mark. The Japanese government had last intervened in the currency market on its own on September 15, 2010, when it sold 2.13 trillion yen, a record amount for a single day.