LONDON: Global stock markets rocketed yesterday as investors cheered the official launch of a $500-billion US government plan to purge banks of toxic assets.

In afternoon trade on Wall Street, the Dow Jones Industrial Average was up 4.29 percent and the Nasdaq index rose 4.15 percent amid greater market optimism.

The FTSE 100 index in London closed up 2.86 percent, the Paris CAC-40 rose 2.81 percent and the Frankfurt DAX gained 2.70 percent.

In Asia, Tokyo’s Nikkei-225 index leapt 3.39 percent, nearing a two-month peak, and Hong Kong stocks raced 4.78 percent higher.

In Tokyo, the Nikkei rose by 3.39 percent at 8,215.53 points — its best finish since January 29.

The Nikkei has risen in five of the past six sessions, soaring more than 1,000 points, or 14 percent, as investors look beyond the current economic downturn and focus on prospects for a recovery.

Gulf Arab markets rose yesterday. The Doha benchmark ended up 1.5 percent at 4,953 points.

Kuwait’s main index ended up 1.15 percent at 6,772 points. In Saudi Arabia, the Tadawul All-Share Index (TASI) closed up 1.23 percent at 4,528.57 points, extending gains into a fourth trading day.

The benchmark index in Abu Dhabi rose 0.54 percent to 2,424 points, ending higher for the fifth session in a row. The Dubai index ended up 1.07 percent at 1,558 points.

The Muscat index ended 0.2 percent higher at 4,796 points.

Bahrain’s index ends 0.1 percent higher at 1,594 points.

Oil prices have topped $54 a barrel, getting a boost from stock investors who seemed hopeful a new plan to resolve the nation’s banking crisis would spur economic growth.

Benchmark crude for May delivery rose $1.73 to settle at $53.80 a barrel in trading on the New York Mercantile Exchange, continuing its upward momentum. Prices climbed as high as $54.05 earlier in the session. In London, Brent prices rose $2.23 to $53.45 on the ICE Futures exchange.

Meanwhile, The dollar gained on the euro and yen yesterday.

On the London Bullion Market, the price of gold fell to $949.25 an ounce from $954 an ounce late on Friday.