Wall Street shares extended their rally on Monday, hitting fresh 2009 highs as strong US retail sales and upbeat economic news from Asia helped reinforce sentiment that an economy recovery is on track.

The Dow Jones Industrial Average jumped 136.49 points (1.33 percent) to 10 406.96, a new 13-month high for blue chips.

Also hitting fresh yearly highs, the tech-heavy Nasdaq composite advanced 29.97 points (1.38 percent) to end at 2197.85 after touching an intraday peak of 2205.32 ? its highest price since 25 September 2008.

The Standard & Poor's 500 broad-market index added 15.82 points (1.45 percent) to 1109.30 ? the first time it finished above the 1100 resistance level since 2 October 2008.

Market action came after the US government said retail sales jumped 1.4 percent in October, well ahead of expectations, even though a large portion was from the volatile auto sector.

Patrick O'Hare at Briefing.com said the overall report was mixed but still shows growth in a segment that accounts for the lion's share of US gross domestic product, or economic activity.

He expected personal consumption to be "on a positive track as far as fourth quarter GDP is concerned."

Analysts said market sentiment was also boosted by positive economic news from Asia.

Leaders of the Asia-Pacific Economic Cooperation (APEC) forum, who together steer more than half the global economy, said after a weekend summit in Singapore that they would maintain hefty stimulus spending "until a durable economic recovery has clearly taken hold."

Japan announced Monday its best economic growth in more than two years during the latest quarter, boosting hopes the global economy is getting back on its feet after the worst recession in decades.

"Upbeat economic news in Asia, which led to broad-based gains in the region, are helping lift sentiment, along with a better-than-expected increase in October retail sales," Charles Schwab & Co analysts said in a clients' note.

Energy stocks were among the top gainers on the back of higher crude oil prices stemming from the upbeat economic recovery signs.

Chevron gained 1.75 percent to $78.61 and ExxonMobil rose 2.70 percent to $74.43.

Citigroup climbed 3.21 percent to 4.18 dollars after billionaire investor John Paulson disclosed that his hedge fund took a large stake in the leading bank by acquiring an additional 300 million shares of the bank in the third quarter.

Technology giant Cisco added 0.67 percent to 23.87 dollars as it sweetened its acquisition offer for Norway-based videoconferencing company Tandberg.

Pharmaceutical company Merck rose 2.15 percent to 33.81 dollars despite a new study that cast fresh doubt on the effectiveness of its cholesterol busting drug Zetia.

Wireless carrier Sprint Nextel jumped 12.90 percent to 3.50 dollars after Credit Suisse analysts upgraded the stock.

The bond market also rose. The yield on the 10-year Treasury bond fell to 3.331 percent from 3.429 percent Friday and that on the 30-year bond declined to 4.258 percent from 4.356 percent. Bond yield and prices move in opposite directions.