Global markets rise on Greece bailout hopes, Chinese data

Global stock markets got a boost Tuesday from an upturn in Chinese inflation and a possible deal on the next stage of Greece's bailout to avert a looming crisis.

Eurozone finance ministers agreed Monday to reach an agreement on debt relief and unlocking bailout cash for Greece by May 24 after Athens passed tough reforms that were prerequisite of a deal.

The 19 ministers meeting in Brussels are now expected to sign off within days on the release of 5.4 billion euros in fresh money for Athens, averting a possible default that has loomed over the eurozone.

Potentially mitigating another global worry, producer prices in China dropped at their slowest rate in 16 months in April, while consumer prices climbed 2.3 percent, possible signs of a turning point for the world's second-largest economy.

The good news -- along with a more than three percent rise in crude prices -- sent Wall Street shares 1.3 percent higher and Europe's major bourses up between 0.4 percent and 0.7 percent, with Frankfurt's DAX 30 topping 10,000.

"Whilst the market enthusiasm for the day's Greek good news began to wane this afternoon, a strong US open helped secure a decent chunk of the morning's European gains," said Spreadex analyst Connor Campbell.

- Blue chip rally -

In the US markets, banks and blue chip industrials like Caterpillar, IBM and Boeing led the markets.

In Europe, travel stocks enjoyed solid gains as British no-frills airline EasyJet hiked its dividend despite falling into a loss, while Dubai's carrier Emirates posted a 56 percent jump in annual profits.

In London, shares in EasyJet closed 2.7 percent higher, helping to boost its rivals' stock value. Deutsche Lufthansa jumped 1.4 percent.

"EasyJet is making a bullish bet on its future by raising the dividend, judging that passenger numbers will continue to rise even while it acknowledges the knock the sector is taking from recent terror attacks" in Brussels and Paris, noted Joe Rundle, head of trading at ETX Capital.

Oil prices bounced back after plunging Monday as the biggest threat to Canada's crude reserves seemed to be over with rain and cooler temperatures slowing fires that have raged for more than a week.

Also supporting prices was fresh data showing Nigerian output has slumped to a 22-year low because of pipeline sabotage and increasing unrest that has seen major companies evacuate staff.

In Forex markets, both the dollar and euro charged higher against the yen after Finance Minister Taro Aso repeated warnings about possible intervention to keep the Japanese currency from climbing higher.

That followed recent similar comments from Prime Minister Shinzo Abe, who has warned over the negative impact of a stronger yen on Japanese firms.

"While the risk of actual intervention to weaken the yen remains low, especially ahead of a G7 meeting in Japan later this month, the comments did prompt investors to pare exposure to the yen at least in the near-term," said Omer Esiner at Commonwealth Foreign Exchange.

- Key figures around 2200 GMT -

New York - Dow: UP 1.3 percent at 17,928.35 (close)

New York - S&P 500: UP 1.3 percent at 2,084.39 (close)

New York - Nasdaq: UP: 1.3 percent at 4,809.98 (close)

London - FTSE 100: UP 0.7 percent at 6,156.65 points (close)

Frankfurt - DAX 30: UP 0.7 percent at 10,045.44 points (close)

Paris - CAC 40: UP 0.4 percent at 4,338.21 points (close)

EURO STOXX 50: UP 0.6 percent at 2,973.84 points

Tokyo: Nikkei 225: UP 2.2 percent at 16,565.19 (close)

Shanghai: UP 1.1 points at 2,832.59 (close)

Hong Kong: UP 0.4 percent at 20,242.68 (close)

Euro/dollar: UP at $1.1372 from $1.1381 Monday

Dollar/yen: UP at 109.27 yen from 108.34 yen