Bombay Durpun - US, European stocks rise as oil prices steady; Asian indexes tumble

Markets have been roiled much of the week as the conflict between the United States and Iran effectively closed shipping through the Strait of Hormuz, where a fifth of the world's crude oil travels as well as considerable liquefied natural gas (LNG) supplies travel through.

That sent crude and gas prices spiking higher, triggering fears of widespread inflation that could strangle economic growth.

But President Donald Trump sought to allay concerns about oil supplies being choked off, saying Tuesday that the US Navy was ready to escort oil tankers and that the United States would offer shippers insurance.

That helped stabilize crude prices Wednesday, with both major contracts finishing flat or little changed.

US equities finished solidly higher, with the S&P 500 up 0.8 percent.

Analysts also said reports on US private-sector hiring and services industry activity that topped expectations also helped sentiment.

Investors "are breathing a sigh of relief" after the better economic data, said Jack Ablin of Cresset Capital Management.

"If you put this military action in context, history suggests that investors will eventually work their way through the challenges and markets kind of carry on," Ablin said.

Earlier, London and Paris ended the day up 0.8 percent, while Frankfurt climbed 1.7 percent.

The gains came despite steep losses across stock markets in Asia, a region heavily dependent on Middle East oil and gas supplies.

Iran's Revolutionary Guards claimed "complete control" of the Strait of Hormuz, with reports of additional vessels in the vital waterway coming under attack on Wednesday.

Energy intelligence firm Kpler said oil tanker transits through the Strait of Hormuz had dropped by 90 percent from last week.

Seoul led losses in Asia as the Kospi tanked more than 12 percent, suffering its worst two-day collapse since the 2008 financial crisis, with trading briefly halted.

"Because South Korea, Japan, China and Taiwan rely heavily on energy shipments that pass through the Strait, any blockage would have significant negative effects on the market," said Chung Hae-chang, an analyst at Daishin Securities.

Japan's Nikkei 225 ended off more than three percent, with chipmakers Advantest and Tokyo Electron slumping more than four percent.

Elsewhere in Asia, Bangkok tumbled eight percent to also spark a brief trading halt, and Taipei sank more than four percent.

The Dubai and Abu Dhabi stock exchanges dropped after a two-day trading suspension because of Iran's missile and drone attacks across the Gulf.

The Dubai bourse fell more than four percent and Abu Dhabi's ADX shed nearly two percent.

- Key figures at around 2115 GMT -

New York - Dow: UP 0.5 percent at 48,739.41 (close)

New York - S&P 500: UP 0.8 percent at 6,869.50 (close)

New York - Nasdaq Composite: UP 1.3 percent at 22,807.48 (close)

London - FTSE 100: UP 0.8 percent at 10,567.65 (close)

Paris - CAC 40: UP 0.8 percent at 8,167.73 (close)

Frankfurt - DAX: UP 1.7 percent at 24,205.36 (close)

Seoul - Kospi: DOWN 12.1 percent at 5,093.54 (close)

Tokyo - Nikkei 225: DOWN 3.6 percent at 54,245.54 (close)

Hong Kong - Hang Seng Index: DOWN 2.0 percent at 25,249.48 (close)

Shanghai - Composite: DOWN 1.0 percent at 4,082.47 (close)

Euro/dollar: UP at $1.1640 from $1.1613 on Tuesday

Pound/dollar: UP at $1.3373 from $1.3358

Dollar/yen: DOWN at 157.06 yen from 157.74 yen

Euro/pound: UP at 87.03 pence from 86.94 pence

West Texas Intermediate: UP 0.1 percent at $74.66 per barrel

Brent North Sea Crude: FLAT at $81.40 per barrel

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A.Zacharia--BD