LONDON, March 21: Stocks streaked higher while oil, gold and bond prices fell on a reversal of recent safe-haven flows on Friday as US-led forces advanced deep into southern Iraq with little initial resistance.

The US Dow Jones Industrial Average rose 0.77 per cent to 8,350.75 points and the Nasdaq composite added 0.47 per cent to 1,409.41 points in early trading.

With the blue-chip Dow index seeking its eighth consecutive gain, traders said the markets have been brushing aside weak economic news in the hope that a swift conclusion to the war will spark a recovery.

European stock markets were in the vanguard of the rally as investors pinned their hopes on a quick end to the war.

The British FTSE 100 index of leading shares firmed 2.5 per cent to close at 3,861.1 points, the German DAX 30 rose 3.8 per cent to 2,704.7 points in late trading and the French CAC 40 index up 3.4 per cent to end at 2,890.7 points.

But Asian share investors were unwilling to take bold positions ahead of the weekend as the US-led offensive in Iraq gathered steam, while the region’s largest market in Tokyo was closed for a holiday.

Share prices closed marginally lower in Hong Kong, where the Hang Seng index lost 0.2 per cent to close at 9,179.19 points.

Oil prices skidded lower again on news of the coalition’s advance, as traders shrugged off comments from British Defence Secretary Geoff Hoon that Iraq might have deliberately set on fire up to 30 oil wells.

The price of benchmark Brent North Sea crude oil for May delivery dropped 60 cents to $24.90 per barrel in late London deals, showing a loss of about 18 per cent over the week.

The dollar meanwhile gained from news of the US-led troops’ advance.

The euro slipped to 1.0535 dollars in late European trading from 1.0611 late on Thursday in New York. The dollar rose against the yen to 121.45 from 120.25 on Thursday.

On the London Bullion Market, the spot price of an ounce of gold dipped to $330.50, down $1.75 from the previous closing price.—AFP