US Defence Secretary Hagel scolds budget cuts

WASHINGTON: Major budget cuts will endanger the US military's ability to conduct its missions, Pentagon chief Chuck Hagel warned.

His comments came hours before President Barack Obama authorized cuts in domestic and defence spending, following the failure of efforts to clinch a deal with Republicans on cutting the deficit.

Hagel, whose budget at the Pentagon is set to be slashed by roughly $46 billion, said earlier: "Let me make it clear that this uncertainty puts at risk our ability to effectively fulfil all of our missions."

In contrast with his predecessor Leon Panetta, who branded the cuts a "doomsday mechanism" and "fiscal castration," Hagel was more measured two days after taking office as defence secretary.

But he made clear his thoughts on the consequences of the so-called "sequester" on the military.

Defence officials say they will be forced to reduce the working week of 800,000 civilian employees, scale back flight hours of warplanes and postpone some equipment maintenance.

The deployment of a second aircraft carrier to the Gulf has also been cancelled.

The US Navy will gradually stand down several hundred planes starting in April, the Air Force will curtail flying hours and the Army will cut back training for all units except those deploying to Afghanistan.

"This will have a major impact on training and readiness," Hagel said. "Later this month, we intend to issue preliminary notifications to thousands of civilian employees who will be furloughed."

Hagel acknowledged that the budget cuts "will cause pain, particularly among our civilian workforce and their families."

"I'm also concerned, as we all are, about the impact on readiness that these cuts will have across our force," he added.

The Pentagon chief expressed "confidence" that the White House and President Barack Obama's Republican foes in Congress would eventually reach agreement.

But other officials laid bare the consequences.

"If you stop training for a while and you're a combat pilot, then you lose your rating and eventually can't fly at all, because we can't allow you to fly if you can't fly safely," said Ash Carter, Hagel's deputy at the Pentagon.

"You can't, you obviously can't fly proficiently, but you can't even fly safely. Then you have to go back to the long building-back process of getting your readiness back."

Obama was bound by law to initiate the automatic, indiscriminate cuts.

The hit to military and domestic spending, known as the sequester, was never supposed to happen, but was rather a device seen as so punishing that rival lawmakers would be forced to find a better compromise to cut the deficit.

But despite a looming reality that the nation would suffer, Democrats and Republicans remained far from compromise and were never close to agreement.

- AFP/fa

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Black Hole Spins at Nearly the Speed of Light

A superfast black hole nearly 60 million light-years away appears to be pushing the ultimate speed limit of the universe, a new study says.

For the first time, astronomers have managed to measure the rate of spin of a supermassive black hole—and it's been clocked at 84 percent of the speed of light, or the maximum allowed by the law of physics.

"The most exciting part of this finding is the ability to test the theory of general relativity in such an extreme regime, where the gravitational field is huge, and the properties of space-time around it are completely different from the standard Newtonian case," said lead author Guido Risaliti, of the Harvard-Smithsonian Center for Astrophysics (CfA) and INAF-Arcetri Observatory in Italy. (Related: "Speedy Star Found Near Black Hole May Test Einstein Theory.")

Notorious for ripping apart and swallowing stars, supermassive black holes live at the center of most galaxies, including our own Milky Way. (See black hole pictures.)

They can pack the gravitational punch of many million or even billions of suns—distorting space-time in the region around them, not even letting light to escape their clutches.

Galactic Monster

The predatory monster that lurks at the core of the relatively nearby spiral galaxy NGC 1365 is estimated to weigh in at about two million times the mass of the sun, and stretches some 2 million miles (3.2 million kilometers) across-more than eight times the distance between Earth and the moon, Risaliti said. (Also see "Black Hole Blast Biggest Ever Recorded.")

Risaliti and colleagues' unprecedented discovery was made possible thanks to the combined observations from NASA's high-energy x-ray detectors on its Nuclear Spectroscopic Telescope Array (NuSTAR) probe and the European Space Agency's low-energy, x-ray-detecting XMM-Newton space observatory.

Astronomers detected x-ray particle remnants of stars circling in a pancake-shaped accretion disk surrounding the black hole, and used this data to help determine its rate of spin.

By getting a fix on this spin speed, astronomers now hope to better understand what happens inside giant black holes as they gravitationally warp space-time around themselves.

Even more intriguing to the research team is that this discovery will shed clues to black hole's past, and the evolution of its surrounding galaxy.

Tracking the Universe's Evolution

Supermassive black holes have a large impact in the evolution of their host galaxy, where a self-regulating process occurs between the two structures.

"When more stars are formed, they throw gas into the black hole, increasing its mass, but the radiation produced by this accretion warms up the gas in the galaxy, preventing more star formation," said Risaliti.

"So the two events—black hole accretion and formation of new stars—interact with each other."

Knowing how fast black holes spin may also help shed light how the entire universe evolved. (Learn more about the origin of the universe.)

"With a knowledge of the average spin of galaxies at different ages of the universe," Risaliti said, "we could track their evolution much more precisely than we can do today."

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Obama Signs Order to Begin Sequester Cuts

President Obama and congressional leaders today failed to reach a breakthrough to avert a sweeping package of automatic spending cuts, setting into motion $85 billion of across-the-board belt-tightening that neither had wanted to see.

President Obama officially initiated the cuts with an order to agencies Friday evening.

He had met for just over an hour at the White House Friday morning with Republican leaders House Speaker John Boehner and Senate Minority Leader Mitch McConnell and his Democratic allies, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Vice President Joe Biden.

But the parties emerged from their first face-to-face meeting of the year resigned to see the cuts take hold at midnight.

"This is not a win for anybody," Obama lamented in a statement to reporters after the meeting. "This is a loss for the American people."

READ MORE: 6 Questions (and Answers) About the Sequester

Officials have said the spending reductions immediately take effect Saturday but that the pain from reduced government services and furloughs of tens of thousands of federal employees would be felt gradually in the weeks ahead.

Sequestration Deadline: Obama Meets With Leaders Watch Video

Sequester Countdown: The Reality of Budget Cuts Watch Video

Federal agencies, including Homeland Security, the Pentagon, Internal Revenue Service and the Department of Education, have all prepared to notify employees that they will have to take one unpaid day off per week through the end of the year.

The staffing trims could slow many government services, including airport screenings, air traffic control, and law enforcement investigations and prosecutions. Spending on education programs and health services for low-income families will also get clipped.

"It is absolutely true that this is not going to precipitate the crisis" that would have been caused by the so-called fiscal cliff, Obama said. "But people are going to be hurt. The economy will not grow as quickly as it would have. Unemployment will not go down as quickly as it would have. And there are lives behind that. And it's real."

The sticking point in the debate over the automatic cuts -- known as sequester -- has remained the same between the parties for more than a year since the cuts were first proposed: whether to include more new tax revenue in a broad deficit reduction plan.

The White House insists there must be higher tax revenue, through elimination of tax loopholes and deductions that benefit wealthier Americans and corporations. Republicans seek an approach of spending cuts only, with an emphasis on entitlement programs. It's a deep divide that both sides have proven unable to bridge.

"This discussion about revenue, in my view, is over," Boehner told reporters after the meeting. "It's about taking on the spending problem here in Washington."

Boehner: No New Taxes to Avert Sequester

Boehner says any elimination of tax loopholes or deductions should be part of a broader tax code overhaul aimed at lowering rates overall, not to offset spending cuts in the sequester.

Obama countered today that he's willing to "take on the problem where it exists, on entitlements, and do some things that my own party doesn't like."

But he says Republicans must be willing to eliminate some tax loopholes as part of a deal.

"They refuse to budge on closing a single wasteful loophole to help reduce the deficit," Obama said. "We can and must replace these cuts with a more balanced approach that asks something from everybody."

Can anything more be done by either side to reach a middle ground?

The president today claimed he's done all he can. "I am not a dictator, I'm the president," Obama said.

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Deadline for benefits e-payments is here

It took 17 years, but Friday marks the deadline to switch federal benefit checks to electronic payments, an initiative Treasury Department officials say will save up to $1 billion over a decade.

In 1996, Congress enacted a law that required all federal payments except tax refunds to be issued electronically by 1999. By December 1998, 75 percent of Social Security payments were being made through direct deposit. Today, 94 percent of Social Security and Supplemental Security Income recipients use direct deposit, said Walt Henderson, director of the Treasury’s electronic fund transfer strategy.

As of May 2011, all new applicants for federal benefits are required to choose an electronic payment method. Those receiving Social Security payments, supplemental security income and veterans benefits have the option of receiving funds by direct deposit to a bank or credit union or on a pre-loaded debit card.

But those who haven’t gone digital won’t be kicked off the rolls, Henderson said, noting they will continue to receive paper checks in the mail. There’s also a chance to apply for a waiver to the paperless requirement if circumstances require it, he said.

The Treasury has not set a date for the permanent termination of paper checks, he said.

The agency didn’t reach its near 100 percent compliance without resistance from members of the check-cashing industry.

People without bank accounts who use check-cashing services may also be hesitant to make the switch, said Edward D’Alessio, general counsel for the Financial Service Centers of America, a trade organization that represents financial-service-center providers.

“The population in this country that is un-banked has concentrations in racial and ethnic minorities and the elderly,” he said. “These are people who may have never been into a bank before. We’re in the neighborhoods, we speak the languages and we’re open extended hours.”

The industry will take a financial hit as paper checks disappear.

“There’s not much that can be done,” said Robert Frimet, the president of a money-service business-consulting firm in Las Vegas. “We’re slowly working our way to a check-free society.”

A check-free society might pose problems for seniors uncomfortable with technology, D’Alessio said, though there has not been much outcry from seniors.

Cristina Martin Firvida, the director of financial security and consumer affairs at AARP, said, “To date, we have not yet heard from a lot of our members that this is a big area of concern or that they want more information or guidance.”

The National Committee to Preserve Social Security and Medicare agreed.

“Irrespective of age, it’s so much more secure than delivery of a paper check,” said Web Phillips, the senior legislative representative for the advocacy group. “If a problem comes up . . . it’s much easier to fix than if a check is lost in the mail.”

Beneficiaries are 125 times as likely to have a problem with a paper check as with an electronic payment, according to written testimony from the Treasury at a Ways and Means Committee hearing in September.

Some exemptions are automatic, Henderson said. People over 90 will automatically continue to receive paper checks without requesting a waiver.

Others eligible for waivers include the mentally incapacitated, people in remote locations without access to banks or ATMs and people who cannot receive electronic payments for religious reasons.

Check recipients can sign up for direct deposit or the Direct Express debit card by calling 800-333-1795.

The Direct Express card was specifically designed for un-banked federal benefit recipients, Henderson said. There is no application or monthly fee. The card can be used to pay bills, make purchases and receive cash back. It is accepted anywhere MasterCard is taken.

“These are benefit payments people depend on, and we want to make sure we deliver them in the safest manner possible,” Henderson said. “Now it’s all about compliance and getting people switched over. It’s about getting them to take the action.”

Discuss this topic and other political issues in the politics discussion forums.

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Initiatives outlined to make it easier for public to get legal help

SINGAPORE: The overarching theme of the Subordinate Courts Workplan seminar this year is to make it easier for the public to get legal help and information.

In his first workplan keynote address, Chief Justice Sundaresh Menon outlined a slew of initiatives to resolve informational inadequacy and litigation costs.

These include the Primary Justice Project to have a team of lawyers who will provide basic legal services to the public, coming up with guide books on motor vehicle accident scenarios, and simplifying the process for minor civil cases.

The initiatives point towards one thing - settling disputes out of court so as to save time and costs.

- CNA/ck

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Sariska villagers block tourists’ entry

ALWAR: About 2,500 villagers on Thursday blocked the main entrance of the Sariska Tiger Reserve, protesting their relocation from areas near the sanctuary.

Sariska field director RS Shekhawat said the villagers had locked the entrance and didn't allow tourists to enter the park. "We are trying to sort out the problem on a priority basis," Shekhawat said.

The villagers, who are on an indefinite sit-in, said they would not clear the blockade unless their demands were met. This is the third such protest in the past eight months against the relocation plan.

Tension began in Sariska when about 2,500 people from 50 villages gathered for a mahapanchayat against the alleged "cheating" by the district administration. "We had called off the agitation in May last year when the district administration agreed on some of our demands including lifting ban on the registry of land, construction of a concrete road and earmarking a grazing area. But now they have backtracked on the promise citing the Supreme Court orders," said Jaikishan Gujjar, a villager.

Since 2008, the farmers in the periphery of the reserve have been protesting the state government and wildlife authorities' decision to relocate them. On February 20, villagers thrashed a few senior sanctuary officials when 70 cattle were seized while grazing in the sanctuary area.

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Scarred Duckbill Dinosaur Escaped T. Rex Attack

A scar on the face of a duckbill dinosaur received after a close encounter with a Tyrannosaurus rex is the first clear case of a healed dinosaur wound, scientists say.

The finding, detailed in the current issue of the journal Cretaceous Research, also reveals that the healing properties of dinosaur skin were likely very similar to that of modern reptiles.

The lucky dinosaur was an adult Edmontosaurus annectens, a species of duckbill dinosaur that lived in what is today the Hell Creek region of South Dakota about 65 to 67 million years ago. (Explore a prehistoric time line.)

A teardrop-shaped patch of fossilized skin about 5 by 5 inches (12 by 14 centimeters) that was discovered with the creature's bones and is thought to have come from above its right eye, includes an oval-shaped section that is incongruous with the surrounding skin. (Related: "'Dinosaur Mummy' Found; Have Intact Skin, Tissue.")

Bruce Rothschild, a professor of medicine at the University of Kansas and Northeast Ohio Medical University, said the first time he laid eyes on it, it was "quite clear" to him that he was looking at an old wound.

"That was unequivocal," said Rothschild, who is a co-author of the new study.

A Terrible Attacker

The skull of the scarred Edmontosaurus also showed signs of trauma, and from the size and shape of the marks on the bone, Rothschild and fellow co-author Robert DePalma, a paleontologist at the Palm Beach Museum of Natural History in Florida, speculate the creature was attacked by a T. rex.

It's likely, though still unproven, that both the skin wound and the skull injury were sustained during the same attack, the scientists say. The wound "was large enough to have been a claw or a tooth," Rothschild said.

Rothschild and DePalma also compared the dinosaur wound to healed wounds on modern reptiles, including iguanas, and found the scar patterns to be nearly identical.

It isn't surprising that the wounds would be similar, said paleontologist David Burnham of the University of Kansas Biodiversity Institute, since dinosaurs and lizards are distant cousins.

"That's kind of what we would expect," said Burnham, who was not involved in the study. "It's what makes evolution work—that we can depend on this."

Dog-Eat-Dog

Phil Bell, a paleontologist with the Pipestone Creek Dinosaur Initiative in Canada who also was not involved in the research, called the Edmontosaurus fossil "a really nicely preserved animal with a very obvious scar."

He's not convinced, however, that it was caused by a predator attack. The size of the scar is relatively small, Bell said, and would also be consistent with the skin being pierced in some other accident such as a fall.

"But certainly the marks that you see on the skull, those are [more consistent] with Tyrannosaur-bitten bones," he added.

Prior to the discovery, scientists knew of one other case of a dinosaur wound. But in that instance, it was an unhealed wound that scientists think was inflicted by scavengers after the creature was already dead.

It's very likely that this particular Edmontosaurus wasn't the only dinosaur to sport scars, whether from battle wounds or accidents, Bell added.

"I would imagine just about every dinosaur walking around had similar scars," he said. (Read about "Extreme Dinosaurs" in National Geographic magazine.)

"Tigers and lions have scarred noses, and great white sharks have got dings on their noses and nips taken out of their fins. It's a dog-eat-dog world out there, and [Edmontosaurus was] unfortunately in the line of fire from some pretty big and nasty predators ... This one was just lucky to get away."

Mysterious Escape

Just how Edmontosaurus survived a T. rex attack is still unclear. "Escape from a T. rex is something that we wouldn't think would happen," Burnham said.

Duckbill dinosaurs, also known as Hadrosaurs, were not without defenses. Edmontosaurus, for example, grew up to 30 feet (9 meters) in length, and could swipe its hefty tail or kick its legs to fell predators.

Furthermore, they were fast. "Hadrosaurs like Edmontosaurus had very powerful [running] muscles, which would have made them difficult to catch once they'd taken flight," Bell said.

Duckbills were also herd animals, so maybe this one escaped with help from neighbors. Or perhaps the T. rex that attacked it was young. "There's something surrounding this case that we don't know yet," Burnham said.

Figuring out the details of the story is part of what makes paleontology exciting, he added. "We construct past lives. We can go back into a day in the life of this animal and talk about an attack and [about] it getting away. That's pretty cool."

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Arias Recounts Each Moment of Stabbing, Slashing

Accused murderer Jodi Arias was forced to recount today each detail of how she killed her ex-boyfriend, Travis Alexander, including re-enacting how he allegedly tackled her when she shot him, leaving her crying in her hands on the witness stand.

During hours of dramatic cross-examination by prosecutor Juan Martinez, Arias bawled as he asked her about stabbing, slashing and shooting Alexander on June 4, 2008.

"You would acknowledge that Mr. Alexander was stabbed, and that the stabbing was with the knife, and it was after the shooting according to you, right?" Martinez said in rapid succession.

"Yes, I don't remember," Arias said, covering her face with her hands.

"Do you acknowledge the stab wounds, and we can count them together, were to the back of the head and the torso?" Martinez said, flashing a photo of Alexander's bloodied body onto the courtroom projector. " Do you want to take a look at the photo?"

Arias, burying her face in her hands and shutting her eyes on the stand, mumbled, "No."

Alexander's sisters, seated in the front row of the gallery, also looked away, crying.

Arias, 32, is accused of killing Alexander on June 4, 2008 out of jealousy. He was stabbed 27 times, his throat was slashed and he was shot in the head twice.

Arias claims she killed in self-defense after Alexander had become increasingly violent with her. She could face the death penalty if convicted.

Martinez also forced Arias to demonstrate in court today how she claims Alexander lunged at her "like a linebacker," causing her to fire the gun at him. The pair argued over how exactly Alexander was positioned, and Martinez pushed her to explain what she meant.

"He lunges at me like a linebacker," Arias said.

"Like a linebacker, what does that mean?" Martinez asked.

Jodi Arias Under Attack in Third Day of Cross-Examination Watch Video

Jodi Arias, Prosecutor Butt Heads in Cross-Examination Watch Video

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"He was low. It was almost like he dove," she said, and trying to explain it further, added, "He was like a linebacker is the only way I can describe it unless I get up to act it out which I'd rather not do."

Catching Up on the Trial? Check Out ABC News' Jodi Arias Trial Coverage

Timeline of the Jodi Arias Trial

"Go ahead and do it," Martinez said. "Just stand. Go ahead."

Judge Sherry Stephens initially cleared the court as Arias demonstrated and then Martinez had her do it again after the jury and spectators were allowed back into the courtroom.

Standing and moving away from the witness box, Arias bent at the waist and spread out her arms and meekly made a slight lunging motion.

According to her testimony, Arias fired the gun as Alexander rushed at her, tackling her to the ground. She said she does not remember how she stabbed or slashed him.

It was a day of dramatics and anger as the prosecution pressed Arias on the details of the killing, with Martinez ending the afternoon of questioning by accusing Arias of lying throughout her direct testimony.

At one point Arias dissolved into tears, unable to answer pointed questions when shown a photo of Alexander's body lying crumpled in the bottom of the stall shower.

After a short pause, Martinez asked dryly, "Were you crying when you were shooting him?"

"I don't remember," Arias moaned.

"Were you crying when you stabbed him?" he said. "How about when you slashed his throat?"

"I don't remember, I don't know."

Martinez pressed on, "You're the one that did this right? And lied about all this right?"

"Yes."

"So then take a look at it," he barked.

Arias did not answer Martinez's question, crying into her hands instead. The judge, after a moment, called for the lunch recess to take a break from the testimony. Arias' attorney walked over and consoled her, telling her to "take a moment."

Until that moment, Arias had given vague answers to Martinez as he asked about the hours leading up to the murder. Arias, 32, has testified that she drove to Alexander's house on June 4, 2008, for a sexual liaison, that she had sex with Alexander and the pair took nude photos before an explosive confrontation ended with her killing him. She claims she doesn't remember stabbing Alexander, but insists it was in self-defense.

Martinez questioned her claims, asking exactly what they argued about and who encouraged whom to take the nude photos. He pointed out that Arias told Detective Esteban Flores of the Mesa police department that she had to convince Alexander to take the nude photos in the shower, but that she testified on the stand that Alexander had wanted them.

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House to vote on Violence Against Women Act measures

Seeking to avoid a protracted and politically damaging fight over reauthorization of the Violence Against Women Act, Republican leaders are prepared to allow the House to vote Thursday on a version of the bill favored by Democrats, an unusual move that acknowledges GOP divisions on the touchy issue.

The House will vote first on a Republican version of the bill, which authorizes funding for programs to aid prosecution of domestic violence and sexual assault cases and assist victims.

But with Democrats unified in opposition and Republicans divided, the GOP’s alternative appears likely to fail.

The House would then move to a vote on a version adopted by the Senate this month on a broadly bipartisan 78 to 22 vote. It broadens the bill’s protections to gays and lesbians and expands the authority of tribal courts to prosecute non-native Americans accused in domestic violence cases on Indian reservations. It is supported by the White House and domestic violence advocates.

That bill is expected to pass on the strength of votes from Democrats and some Republicans — and over objections from a bloc of conservatives, an increasingly common pathway for successful legislation in a House roiled by divisions inside the GOP majority.

The outcome would send the Senate bill to President Obama for his signature, reauthorizing the landmark measure which has been credited with raising awareness of the problems of violence against women since it was first enacted in 1994.

“The majority of the country feels strongly this is something we ought to do,” said Rep. Tom Cole (R-Okla.), a Native American. He prefers the Senate bill because of how it would deal with crimes committed on Indian reservations. “It’s better to resolve this and move on, rather than be hung up on the issue.”

VAWA has been reauthorized on noncontroversial and bipartisan votes twice.

But a third reauthorization stumbled on a partisan dispute last year after the House adopted a Republican bill in response to opposition expansions in VAWA’s protections that had been adopted by the Senate.

The two chambers could not work out differences in their bill before it expired with the end of the last Congress.

But after a campaign season marred by GOP missteps on the sensitive issue of rape and an election won by Democrats in part because of women’s support, Republican leaders are now eager to find a resolution on the issue.

When the Senate took up a bill similar to one that passed last year with 15 Republican Senate votes, its GOP support grew to 23 senators. A bloc of House Republicans then began urging their leaders to allow the bipartisan version to receive a vote.

“Elections have consequences,” said Terri O’Neal, president of the National Organization for Women, which is part of a broad coalition pushing the Senate version, explaining the shift.

“House Republicans look increasingly out of touch with the American public if they’re the place where these bipartisan bills come to die. I think wiser heads among their leadership recognize that,” said Rep. Chris Van Hollen (D-Md.).

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Asian markets rise on Wall St rally, ECB comments

HONG KONG: Asian markets rose Thursday after the Dow on Wall Street hit a more than five-year high, while the head of the European Central Bank soothed concerns over the eurozone.

A strong bond sale in Italy also helped the euro despite uncertainty after weekend polls, while the yen resumed its downward trend after Japan's government nominated a fan of aggressive easing as the new central bank governor.

Tokyo climbed 2.04 per cent as the yen sank on confirmation that Japan's government had put forward Haruhiko Kuroda to take over at the Bank of Japan.

Kuroda, the current Asian Development Bank chief, is known as an advocate of a looser monetary policy to overcome slow growth, in line with the views of Prime Minister Shinzo Abe.

The dollar bought 92.44 yen, compared with 92.16 yen in New York late Wednesday.

Hong Kong shares advanced 1.10 per cent, Sydney added 0.71 per cent, Seoul rose 1.02 per cent and Shanghai was up 0.39 per cent.

ECB President Mario Draghi said Wednesday the bank would preserve the integrity of the eurozone, reasserting its commitment to buy up bonds of under-pressure countries.

"We are committed to preserving the integrity of our currency, in the interests of all people of the euro area," he said.

The announcement, which came after US Federal Reserve Chairman Ben Bernanke said its own huge easing would stay in place, came as welcome relief to markets after Italy's poll deadlock raised fears of a return to Europe's debt crisis.

On forex markets the euro rebounded after being hammered in the wake of Sunday's inconclusive poll, which saw voters shun austerity policies and leave the country with a hung parliament.

The euro sat at $1.3150 and 121.56 yen in Tokyo, from $1.3136 and 121.07 yen -- and well up from the levels just above $1.30 and 119 yen seen earlier in the week.

The single currency was also given support from news that Rome had successfully sold 6.5 billion euros of treasury bonds, albeit at a higher price, providing evidence for now that it can borrow cash to pay its own bills.

On Wall Street the Dow ended at its highest level since October 2007 after reports showed US pending home sales rebounded sharply in January to the highest level in almost three years.

In other positive news, durable goods orders in January -- excluding volatile aircraft -- surged 1.9 per cent, with gains particularly strong in capital goods, suggesting business confidence in the economy in upcoming months.

The Dow jumped 1.26 per cent, while the S&P 500 rose 1.27 per cent and the Nasdaq added 1.04 per cent.

Oil prices rose, with New York's main contract, light sweet crude for delivery in April, gaining 34 cents to $93.10 a barrel and Brent North Sea crude for April delivery adding 35 cents to $112.22.

Gold was at $1,597.70 at 0220 GMT compared with $1,608.32 late Wednesday.

- AFP/ck

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