By Stuart Wallace March 29 (Bloomberg) -- Stocks and commodities gained as the dollar and the yen fell against the euro after Greek deficit concern abated and signs of economic recovery sparked demand for higher-yielding assets. Oil rallied 2.6 percent. The Standard & Poor’s 500 Index rose 0.4 percent to 1,171.08 at 9:59 a.m. to extend its gain since Dec. 31 to more than 5 percent, poised for its best first quarter since 1998. The MSCI World Index of 23 developed nations’ stocks climbed for a third day, advancing 0.1 percent, and the MSCI Emerging Markets Index increased 0.8 percent. The S&P/GSCI Index of commodities jumped more than 2 percent, the most since Feb. 16. Government data showed consumer spending in the U.S. rose in February for a fifth straight month and a jobs report on April 2 may show the largest increase in employment in three years. The European Union reported an improvement in business and consumer confidence, days after the region’s leaders and the International Monetary Fund pledged to help Greece finance its budget deficit, the biggest in the bloc. “Growth is starting to look more and more entrenched,” said Nader Naeimi, an investment strategist in Sydney at AMP Capital Investors, which oversees $90 billion. “Investors are looking for the recovery to turn into an outright expansion.” Energy and raw-materials producers led gains in the U.S., with Exxon Mobil Corp. and Freeport-McMoRan Copper & Gold Inc. rising. The Stoxx Europe 600 Index was little changed. BHP Billiton Ltd., the world’s largest mining company, surged as much as 2 percent. Bank of Ireland Plc and Allied Irish Banks Plc dropped more than 8 percent on concern the government will have to increase its stakes in the lenders as a so-called bad bank begins taking over toxic loans. Asian Stocks The MSCI Asia Pacific Index rallied 0.5 percent. The Shanghai Composite Index jumped 2.1 percent, the most in more than seven weeks, while Taiwan’s Taiex index climbed 0.9 percent. China Resources Land Ltd. and China Construction Bank Corp. advanced after reporting higher profits. Stocks rose even after Stern Hu, the Australian executive who headed Rio Tinto’s iron ore business in China, was sentenced to 10 years in jail by a court in Shanghai after being found guilty of taking bribes and infringing commercial secrets. The Micex index climbed 1.6 percent for the biggest intraday gain since March 12 even after suicide bombers killed at least 38 people in the deadliest terrorist attacks in Moscow since 2004. Dubai shares fell the most in six weeks, with the DFM General Index sliding as much as 2.7 percent. Contracts to protect against a default by Dubai rose 15 basis points to 419, according to credit-default swap prices from CMA DataVision. Commodities Crude oil for May delivery rallied 2.6 percent to $80.09 a barrel in New York trading. Copper gained 2.7 percent $7,720 a metric ton and nickel increased 1.1 percent to $23,850 a ton in London, both advancing for a third day. Gold for immediate delivery rose 0.3 percent to $1,111.15 an ounce as investors bought the metal as a hedge against the weaker dollar. Silver and platinum also gained. The yen weakened 0.4 percent to 124.57 against the euro, with the dollar also depreciating 0.4 percent, to $1.3457 per euro. The Dollar Index slid 0.4 percent to 81.356. Treasuries fell, with the yield on the 10-year note up almost 1 basis point to 3.85 percent, near the highest level since June. The 10-year German bund yield was at 3.12 percent, while the yield on the Greek 10-year bond rose 8 basis points to 6.28 percent. The extra yield investors demand to hold the Greek securities instead of bunds widened 11 basis points to 316 basis points. Greece plans to sell a benchmark bond in euros with a seven-year maturity, and may price the issue to yield about 310 basis points over swaps, said a banker involved in the transaction. To contact the reporter on this story: Stuart Wallace in London at swallace6@bloomberg.net

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