LONDON, Feb 6: World stock markets surged on Friday, led by Wall Street where investors looked past a grim jobless report to focus on a huge US economic stimulus plan and hopes for the finance sector, traders said.

European stocks closed sharply higher, led by gains on Wall Street where the bleak US unemployment report was taken to boost the chances of President Barack Obama’s 900-billion-dollar package being passed quickly.

London’s FTSE index of leading shares closed up 1.49 per cent at 4,291.87 points. The DAX index in Frankfurt jumped 2.97 per cent to 4,644.63 points and the CAC 40 in Paris gained 1.84 per cent to 3,122.79 points.

In New York, the Dow Jones Industrial Average powered 2.33 per cent higher to 8,251.20 in early trade. The tech-heavy Nasdaq climbed 2.15 per cent to 1,579.43 and the broad Standard & Poor’s 500 index advanced 2.09 per cent to 863.52.

Traders said Wall Street had been braced for the bleak data, however, seeing it as further pressure on Congress to approve the stimulus plan.

In London, British Airways climbed 10.5 per cent. It had posted a net loss in the first nine months of its 2008-2009 financial year, in line with a warning it issued last month, and signalled it would slash costs.—AFP