According to the reports, U. S. markets surged on Thursday in New York, following two days of gains in Asia and Europe.

As the Italian government agreed to cut spending by $29.3 billion through 2012, joining Greece, Ireland, Portugal and Spain in an effort to reduce government debt, fears of a weakened euro retreated.

The euro, in addition, got a boost when Xinhua news agency reported Thursday that China's Stated Administration of Foreign Exchange had denied China was studying a divestment of its European bonds.

The Dow Jones industrial average, by close of trading, added 284.54 points, 2.85 percent, to 10,258.99.

The Standard & Poor's 500 index added 3.29 percent, 35.11 points, to 1,103.06.

Rising by 3.73 percent, 81.80 points, the Nasdaq composite index went up to 2,277.68.

2,879 stocks advanced and 221 declined on a volume of 5.5 billion shares traded, on the New York Stock Exchange.

The benchmark 10-year U. S. treasury note lost 1 12/32 to yield 3.351 percent.

From Wednesday's $1.2193, the euro rose to $1.2359. The dollar, against the yen, rose to 91.03 yen from Wednesday's 89.94 yen. (With Inputs from Agencies)