LONDON (AP) World stock markets mostly advanced yesterday on hopes that growth in the US and Asia will be stronger than expected, helping to offset the impact of Europe’s debt crisis.

A compromise in Washington to extend tax cuts helped shares and sent bond prices sharply lower the day before, as some investors expect it to lead to stronger consumer spending in the world’s No. 1 economy. Strong US jobs figures added to that momentum yesterday.

In Europe, Britain’s FTSE 100 gained 0.5 percent to 5,824.52, and France’s CAC-40 was up 0.8 percent at 3,860.77. Germany’s DAX was up 0.1 percent at 6,984.15.Asian indexes closed mostly higher.

Positive sentiment lingered from the US tax deal and was boosted before the Wall Street open by upbeat jobs data.

In Europe, the worst of the debt crisis’ latest flare-up seemed past, with Ireland this week passing a painful austerity budget that will secure its access to an international bailout loan. Portugal and Spain have taken similar steps to shore up their finances, and on Thursday the European Commission said it was taking a “positive look” at extending the loan repayment schedule for Greece.

Olli Rehn, the EU commissioner for economic affairs, said he favours helping Greece smoothen its debt and bailout loan repayment schedule. Expectations are that Greece’s three-year deadline to start repayments will be pushed back by up to 4 ½ years, in line with Ireland’s bailout terms.

However, credit ratings agency Fitch downgraded Ireland’s sovereign debt by three notches, with a stable outlook, meaning no new downgrades are expected. The move confirms the country’s fiscal fragility in the wake of its bailout by the EU and IMF.

Market sentiment was boosted earlier in Asia, where Japan’s economic growth rate was revised up to an annualised 4.5 percent in the third quarter and Australian unemployment figures fell.

Japan’s benchmark Nikkei 225 stock average closed 0.5 percent higher at 10,285.88, as the dollar hovered near 84 yen, bolstering exporters who in past months were struggling against a much stronger yen.

Hong Kong’s Hang Seng index rose 0.3 percent to 23,171.80. South Korea’s Kospi jumped 1.7 percent to 1,988.96, thanks to the buying of tech and banking shares.

Australia’s S&P/ASX 200 climbed 0.9 percent to 4,741.30 amid data showing the unemployment rate fell to 5.2 percent and the number of employed people jumped by 54,600.

China’s Shanghai Composite Index bucked the trend, losing 1.3 percent to 2,810.95 amid continued jitters that interest rates will be raised by the central bank.