US stocks advance amid Microsoft's $ 8.5 bn acquisition

In the US markets, stocks advanced amid Microsoft's USD 8.5 billion acquisition of Skype, strength in China's economy, and rising commodity prices.

Dow Jones Industrial Average rose 0.6% or 75.68 points at 12760.36. Nasdaq Composite gained 1.01% or 28.64 points at 2871.89. Standard & Poor's 500 added 0.81% or 10.87 points at 1357.16.

On the economic front, wholesale businesses increased inventories by 1.1% in March amid a jump in sales. The import prices rose 2.2% in April. Also, an index of small business owner sentiment fell 0.7 point to 91.2 in April even as sales performance improved.

In the currency space the yen fell against major currencies as signs the global economic recovery is picking up supported stocks and commodities, damping demand for Japan's currency as a refuge.

Onto the commodities now oil rose to four-day high despite news that the CME group raised margins for crude futures by 25%. Concerns that increased flooding of the Mississippi river could hit the US gulf coast refining hub and disrupt fuel output and data showing strong Chinese crude imports for April supported prices.

Gold gains on concern that Europe's debt crisis will drive the euro lower, spurring demand for precious metals as alternative assets. Silver too has the biggest two-day rally in six months after plunging 27% last week.