By Stephen Kirkland March 24 (Bloomberg) -- Portuguese borrowing costs rose to the highest level since the euro’s inception in 1999 and stocks gained on speculation the European Union will bail out indebted nations. Silver climbed while the Swiss franc weakened. The yield on the Portuguese two-year note jumped nine basis points to 6.69 percent at 9:33 a.m. in New York after climbing to as high as 6.89 percent. Ireland’s 10-year bond yield topped 10 percent for a second day. The Stoxx Europe 600 Index rose 0.7 percent and the Standard & Poor’s 500 Index advanced 0.4 percent. The franc depreciated against 12 of its 16 major peers. Silver climbed to a 31-year high. European leaders meet in Brussels today after Portugal’s parliament rejected budget-cutting measures, pushing the country closer to a bailout. Allied warplanes continued strikes against Muammar Qaddafi’s ground forces in Libya. Japanese manufacturers started production at some idled plants even as authorities tackled radiation leaks caused by the March 11 earthquake. “Despite a political crisis in Portugal,” markets “are shrugging off these issues with risk performing well,” Jim Reid, head of fundamental strategy at Deutsche Bank AG in London, wrote in a note. “This may be due to a belief that however messy the process is, a Portuguese bailout will occur at some point and in some form.” Portugal, Ireland The yield on Portugal’s two-year bonds jumped as much as 55 basis points this week. The extra yield investors demand to hold 10-year Portuguese notes instead of benchmark German bunds rose three basis points to 442 basis points today, the most in four months. Bonds pared declines after two European officials with direct knowledge of the matter said a bailout for Portugal may total as much as 70 billion euros ($99 billion). Royal Bank of Scotland Group Plc estimates the cost of a rescue at about 80 billion euros. Irish bonds fell after LCH Clearnet Ltd., Europe’s largest clearing house, said it will raise the extra deposit charged to trade the government’s bonds to 35 percent. The Irish-German 10- year spread widened to as much as 698 basis points, the most since at least 1991. The Greek-German spread increased. The S&P 500 climbed for a second day, extending the rebound from its 2011 low last week to 3.7 percent. Best Buy Co., Micron Technology Inc. and Red Hat Inc. rallied after earnings topped analysts’ estimates. Initial U.S. jobless claims declined by 5,000 to 382,000 in the week ended March 19, Labor Department figures showed, in line with the median forecast of economists surveyed by Bloomberg News. The total number receiving benefits dropped to the lowest level in almost three years. Other data from the Commerce Department showed bookings for goods meant to last at least three years unexpectedly dropped 0.9 percent, reflecting declines in demand for capital goods and military aircraft. European Stocks Six stocks gained for every one that fell in the Stoxx 600. Kingfisher Plc jumped 8.5 percent and Next Plc rose 5.7 percent, leading gains in U.K. retailers, after earnings beat estimates. Cable & Wireless Worldwide Plc plunged 14 percent after predicting that gross margins in its legacy voice business will decline more than previously forecast. The MSCI Emerging Markets Index gained 0.8 percent, its fifth advance. Benchmark stock indexes in Russia and South Africa jumped 0.9 percent as gold and copper prices rose. Dubai’s DFM General Index climbed 1.4 percent as investors in Middle Eastern assets turned to the United Arab Emirates, which has been spared protests hitting neighboring countries. Egyptian shares tumbled for the second day, with the EGX 100 Index falling as much as 7.8 percent, as investors trimmed holdings to free money locked in for almost two months during the bourse’s closure. The index last traded down 4 percent. Franc, Euro The franc depreciated 0.4 percent against the euro, and 0.2 percent versus the dollar. The euro rallied 0.3 percent against the dollar and the yen to 114.46. The pound dropped against all 16 of its most traded peers after a report showed U.K. retail sales fell more than economists forecast in February. New Zealand’s dollar jumped 1 percent against the U.S. currency and the yen after a government report showed the nation’s economy expanded more than economists predicted in the fourth quarter. Commodities gained for a seventh day, with the S&P GSCI index of 24 commodities extending the longest-winning streak since November. Silver jumped as much as 1.1 percent. Natural gas gained 1.4 percent, its third straight gain, on speculation that Japan will seek alternative fuels to compensate for lost nuclear power. Crude for May delivery was little changed at $105.62 a barrel in electronic trading on the New York Mercantile Exchange. --With assistance from Claudia Carpenter, Abigail Moses, Andrew Rummer, Daniel Tilles and Jason Webb in London. Editor: Michael P. Regan To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net. To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net.

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