The Dow shot ahead 157 points on Wedneday ignited by an rally in internet stocks.

It ended the day at 9,202, while the technology-dominated Nasdaq index rose 51 points, or 2.4%, to a record 2,172.

New York's rally surprised even the traders

The FTSE 100 last hit current levels - it finished up 65.5 at 5908.8 yesterday - in July, and if the trend of the past few weeks carries on it could well end the year above the 6000 level.

New York's move was attributed to a "Santa Claus rally".

"There's a uniqueness to this time of year, because there is no tax-related selling plus the economy is really showing some resilience," said Dick Stein of Noble International Investments.

But there is still concern that underlying fears over disappointing earnings results and profits warnings will catch up with investors early in the New Year.

Asian markets overnight offered no real direction.

Tokyo falls back

Tokyo slipped back on disappointment with a Standard & Poor's downgrade of seven Japanese banks.

Continued worries that higher bond yields could hurt Japanese corporate activity also plagued the market.

The Nikkei average of 225 selected issues fell 72.72 points to 13,706.73.

"Until bond prices settle down, the stock market is going to remain unstable," said Sachio Ishikawa, manager at Chuo Securities.

Hong Kong moved ahead with the New York rally.

French and German bourses remain shut today and other continental bourses, such as London will close early. Trade on the London Stock Exchange will end at 1230 GMT.