NEW YORK, Nov 9: US stocks bounced higher on Friday as buyers stepped in following two days of steep losses after data showed confidence among US consumers and wholesale business inventories were stronger than expected.

US consumer sentiment rose to its highest level in more than five years in November, according to the Thomson Reuters/University of Michigan preliminary index of sentiment, indicating Americans felt more optimistic about employment prospects and the outlook for the overall economy.

Still, markets remained concerned about the widening euro zone crisis and the looming “fiscal cliff.”

President Barack Obama, re-elected three days ago, is expected to make a statement in the White House about the looming tax increases and government spending cuts.

The so-called fiscal cliff would begin early next year and unless Congress acts to change the law before then, experts warn the economy could tip into recession.

The Dow Jones industrial average rose 22.28 points, or 0.17 per cent, to 12,833.60. The S&P 500 gained 6.52 points, or 0.47 per cent, to 1,384.03. The Nasdaq Composite added 18.65 points, or 0.64 per cent, to 2,914.24.“The market is trying to send a very strong signal,” Manley said. “Any action that does not deal with the issues in front of us will be punished by the market.”

Asian markets

Asian markets fell on Friday, extending their losses from the previous day as fears the United States is headed for another economic crisis sent Wall Street diving again and dealers running.

Tokyo fell 0.90 per cent, or 79.55 points, to 8,757.60, Sydney fell 0.49 per cent, or 21.8 points, to 4,462.0, while Seoul shed 0.52 per cent, or 10.00 points, to 1,904.41.

Hong Kong lost 0.85 per cent, or 182.53 points, to 21,384.38. Shanghai ended down 0.12 per cent, or 2.44 points, at 2,069.07, although it was well off its earlier lows thanks to the upbeat economic figures.—Agencies