Dow Jones surges after US 'fiscal cliff' deal

US market index, the Dow Jones industrial average, has surged 230 points after a budget deal of delayed spending cuts and sharp tax rises averted a fall over a so-called "fiscal cliff".

The Wall Street Journal reports that the Dow Jones shot up 1.8% to 13335 points when the New York Stock Exchange opened.

Read more: Why America's budget crisis has been averted, but not solved

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Obama hails US budget deal

Barack Obama has hailed a deal to avoid a "fiscal cliff" of stark tax hikes and spending cuts. The US House of Representatives backed the bill by 257 votes to 167.