Overnight Markets: Wall Street upbeat on global manufacturing data

US stocks advanced on Wednesday amid signs that manufacturing across the world is strengthening and as Greece neared a long-delayed agreement with private creditors.

The Dow Jones industrial average gained 84 points, or 0.66%, to 12,716. The Standard & Poor's 500 Index rose 12 points, or 0.89%, to 1,324. The Nasdaq Composite Index climbed 34 points, or 1.22%, to 2,848.

An index of the US manufacturing sector increased in January to its highest level since June, while China's factory sector expanded slightly, beating expectations for a contraction. Germany recorded its first rise in manufacturing output in four months.

Contributing to the positive sentiment, Greek Finance Minister Evangelos Venizelos said negotiations between Athens and its private creditors were "one formal step away" from an agreement needed to avoid a messy default.

Sectors which gained the most were industrials, financials and basic materials. Caterpillar rose 1.3% and was the biggest boost to the Dow industrials. Whirlpool surged 13.5% after giving an optimistic full-year outlook.

Financials were the main beneficiary of the positive news on Greece. Bank of America rose 3.2% and Citigroup rose 2.9%. Morgan Stanley gained 4%.

Homebuilder shares were boosted after US data showed construction spending surged in December. PulteGroup jumped 5.1%.

Technology companies also rose with Microsoft advancing 1.2%. Hewlett-Packard increased 2.8%.

On the negative side, Amazon.com plunged 7.7% a day after the online retailer warned of a possible first-quarter loss and posted a steep decline in fourth-quarter profit.

In Asia, stocks rose on Thursday in morning session in response to upbeat manufacturing figures in the US and Europe that boosted confidence the global economy is recovering.

The MSCI Asia Pacific Index gained 1.2% to 125 as of 10:30 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average gained 0.9%, while the broader Topix Index advanced 1%. South Korea’s Kospi Index climbed 1.4%, while Australia’s S&P/ASX 200 Index increased 1%. Hong Kong’s Hang Seng Index advanced 1.5%.

In corporate news, LG Electronics jumped 6.5% in Seoul. James Hardie Industries jumped 4.8% in Sydney as construction spending in the US rose in December at the fastest pace in four months.