Trader's Highlight

DJI-NEW YORK, Feb 25 (Reuters) - U.S. stocks rose on Friday, bouncing back from a three-day sell-off as oil prices stabilized, but unease over the Libyan rebellion could be enough to keep buying in check.

The S&P 500 lost 1.7 percent for the week, breaking a three-week streak of gains. Friday's bounce followed a late recovery Thursday that showed buyers were ready to support shares after a bout of selling.

Analysts have been calling for a correction in stocks, with the S&P 500 up 25.8 percent since the start of September. Much weaker-than-average volume on Friday cast doubt on stocks' ability to move higher.

The Dow Jones industrial average <.DJI> gained 61.95 points, or 0.51 percent, to end at 12,130.45. The Standard & Poor's 500 Index <.SPX> advanced 13.78 points, or 1.06 percent, to finish at 1,319.88. The Nasdaq Composite Index <.IXIC> rose 43.15 points, or 1.58 percent, to close at 2,781.05.

NYMEX-NEW YORK, Feb 25 (Reuters) - U.S. crude oil futures rose on Friday, posting their highest weekly settlement since September 2008, as supply worries arising from the Libyan unrest persisted.

In volatile trading, prices closed well below Thursday's 2-1/2 year highs, as top oil Saudi Arabia raised its production to calm market fears due to outages in Libyan output.

Short-covering ahead of the weekend developed on concerns that tensions would spread to other oil-producers and after the United States announced it was imposing sanctions against Libya for Muammar Gaddafi's treatment of his opponents.

On the New York Mercantile Exchange, crude for April delivery settled at $97.88 a barrel, up 60 cents, or 0.62 percent, trading from $96.17 to $99.20. It was the highest settlement since Sept. 26, 2008's close at $106.89. For the week, the contract rose $11.68, gaining 13.5 percent.

CBOT-CHICAGO, Feb 25 (Reuters) - Chicago Board of Trade grain and soy complex closing trends on Friday.

CBOT-SOYBEANS - May up 45-3/4 cents at $13.75 a bushel. Rallied from steep declines this week, buoyed by technical buying and forecasts for continued tight U.S. soy stocks. Market briefly rose the 70-cent daily limit before easing.

CBOT-SOYOIL - May up 2.30 cents at 57.58 cents per lb. Soared after USDA projected 2011/12 soyoil ending stocks at 2.073 billion lbs, down from 2.573 billion in 2010/11. Spillover strength from soybeans added support. Market briefly traded up the 2.5-cent limit before setting back.

FCPO-KUALA LUMPUR, Feb 25 (Reuters) - Malaysian palm oil futures rose as much as 2.5 percent on Friday after sharp sell-off the previous day as investors snapped up bargains although concerns lingered over Middle East unrest slowing economic growth.

Palm oil hit its lowest since Nov. 29 on Thursday with traded volumes hitting a record high of 48,704 lots of 25 tonnes each on selling pressure from refiners and funds cutting positions. [ID:nL3E7DO0WM]

The benchmark May crude palm oil futures climbed as much as 86 ringgit to 3,541 ringgit($1,155)before settling at 3,515 ringgit. Traded volume at the time stood at 29,810 lots of 25 tonnes each from the usual 15,000 lots.

REGIONAL EQUITIES-COLOMBO, Feb 25 (Reuters) - Southeast Asian stock markets rallied on Friday but volume was thin and worries about rising oil prices, which could hurt economic growth, meant trading would continue volatile next week, analysts said.

Brent oil traded above $112 a barrel as the revolt in Libya sparked fears of supply shortages, despite assurances by top oil exporter Saudi Arabia that it would step in to fill any shortfall.

Singapore <.FTSTI> gained 1.8 percent and the Philippines <.PSE> edged up 0.2 percent as both markets recovered from a near-six-month low.