Tech stocks rose across the world after Oracle Corp. forecast higher spending and sales, stoking confidence in the sector and supporting broader markets.
One prominent exception was Research in Motion Ltd., whose shares fell as much as 13 per cent in U.S. premarket trading. The BlackBerry-maker announced a disappointing first-quarter outlook after the market closed Thursday, blaming increased marketing and research and development costs related to the PlayBook, as well as an overall sales shift toward lower-margin handsets.
Nasdaq stock futures rose to 2,319, up 10.5 points or 0.5 per cent. Dow Jones Industrial Average futures were at 12,160, up 44 points or 0.4 per cent, while S&P 500 futures were up 5.2 points, or 0.4 per cent at 1,310.40.
In Europe, technology shares gained after Oracle forecast a 4 to 14 percent rise in sales of new software this quarter, fuelling hopes a global resurgence in technology spending remains intact. Accenture Plc, the world's second-largest technology-consulting company, also predicted better-than-estimated sales for this quarter. The STOXX Europe 600 Technology index rose 0.8 percent, while SAP rose 2.7 percent.
The FTSEurofirst 300 index of top European shares was 0.4 percent higher at 1,127.85 points, the highest since March 11, when a massive earthquake and tsunami hit Japan. Britain's FTSE 100, Germany's DAX and France's CAC 40 were flat to 0.7 percent higher. Portugal's PSI 20 was up 0.2 percent.
Financial stocks fell, with the STOXX Europe 600 banking index down 0.2 percent. Banco de Valencia fell 1 percent, while Banco Popular dropped 0.6 percent. Standard & Poor's downgrade of Portugal's credit ratings by two notches to BBB hurt sentiment. The rating agency also warned it could cut it again as early as next week depending on the final shape of the euro zone bailout fund.
European leaders have agreed to raise their financial rescue fund to the full 440-billion euros by June, but avoided discussion of Portugal which is under pressure to seek a bailout following the resignation of its prime minister. The yield on 10-year Portuguese government bonds rose to a new euro-era high above 8 percent, well above the level which the government says is sustainable, and the premium to hold its 10-year debt rather than Germany's widened to 474 basis points.
Tokyo's Nikkei 225 closed up 1.1 per cent to 9,536.13. Consumer electronics companies clawed back recent losses, with Sony Corp. up 3.3 per cent, and Panasonic Corp. up 1.8 per cent.
Hong Kong's Hang Seng index rose 1.1 per cent to 23,158.67 and South Korea's Kospi moved 0.9 per cent higher to 2,054.04, with investors snapping up high-tech shares, such as Samsung Electronics Co. Ltd., which gained 3.4 per cent.
Oil rose 10 cents to $105.70 (U.S.) a barrel as upheaval in the Middle East and signs of strong global demand kept crude near two-year highs.
Gold held steady below record highs hit in the previous session, as worries about euro zone's debt crisis and Middle East turmoil supported sentiment,
The euro dropped to $1.4148 from $1.4183 late Thursday. The U.S. dollar edged up to 81.19 yen from 80.95 yen.
Sonali Verma