US blue-chip stocks hit a new high for the year, as takeover action buoyed sentiment in Europe and Asia and investors were reassured by the market’s ability to take in its stride Friday’s worse-than-expected US jobs data.

The Dow Jones Industrial Average rose 2.03 per cent to 10,226.94, closing at its highest level since October 2008 as investors moved into shares that would benefit from a declining dollar and global growth.