The International Monetary Fund (IMF) is raising its outlook for the US economy, as a budget deal in Washington and the Federal Reserve’s plan to taper its bond buying ease doubts about the future, IMF managing director Christine Lagarde said.

Oil fell for a third day after government data showed US inventories rose to the highest level in more than five months and on expectations that the Federal Reserve will not take new action to bolster the economy.

OIL rose to the highest level in more than a week in New York, climbing with equities on optimism that the economy willexpand and a report that US consumer spending gained in July.

Japanese stocks jumped by the most in more than four years after Federal Reserve Chairman Ben S Bernanke hinted the central bank has almost finished raising US interest rates.