Shares rallied after an early wobble over concerns about the Chinese economy after consumer price inflation in China accelerated rapidly in February.

European markets retreated across the board as Chinese inflation data raised fears that the government of the world's third largest economy will further ease back on economic stimulus measures to prevent the Chinese economy overheating.

The Nikkei rose 0.96% on Thursday as the weaker yen made exporters such as Canon, Sony and Honda more appealing.

US shares closed flat as unemployment figures prompted investors to question the Dow's rally toward a two-month high.

Bourses responded well to a decent start on Wall Street, which continues to trade at levels last seen in January, with banks among the best performers.

The Nikkei struggled to get off the ground on Wednesday with commodities the main drag on the index. Fears about deflation also emerged following the release of official data.

US stocks eased back near the close but still closed higher a year on from the bottom of the recent market weakness.

A recovery from early losses on Wall Street dragged bourses out of the red, just, although banks and Airbus parent EADS stood out among the fallers.

The Nikkei fell 0.17% on Tuesday as profit takers moved in on recent gains.

Stocks were mixed. Nasdaq hit an 18-month hit but the Dow slipped a little on a stronger dollar and weaker commodity prices.

Europe's main markets closed slightly lower with banks and drug companies leading the fallers.

The Nikkei increased 2.1% on Monday with exporters such as Sony punching through gains of 2.8% as the yen eased against major currencies.

Hopes that the recession is nearing an end boosted Wall Street on Friday, with technology stocks leading Nasdaq to an 18-month high.

European markets posted good gains after a much better than feared read on US non-payrolls.

Japanese stocks rallied Friday as speculation that the country's central bank will further ease monetary policy hit the yen.

After a mid-morning wobble shares kicked on again in the afternoon session ahead of Friday’s keenly awaited non-farm payrolls data.

US stocks rediscovered early strength to close with good gains, having dipped around midday.