The dollar extended its gains on Thursday as strong US growth and jobs data helped traders move past North Korea's missile test, while oil gained only slightly as deadly storm Harvey batters the Gulf Coast.

Stock markets were also up but one notable heavy loss among individual companies was French supermarket giant Carrefour.

Its share price dived 15 percent to stand at 16.57 euros in Paris midday deals after the group published disappointing results for the first half and warned of a drop in earnings for the whole year. 

Investors in Europe also reacted to news that eurozone inflation rose closer to the European Central Bank's 2.0-percent target in August.

The fresh data will reinforce hopes that, despite uncertainty and the unknowns of Brexit, the eurozone is emerging from the worst of the financial crisis that began in 2008.

"The greenback still seems to be benefiting from yesterday's better than forecast second-quarter GDP reading," said Spreadex analyst Connor Campbell. 

The US Commerce Department reported the world's largest economy expanded a forecast-beating three percent in the second quarter.

"The dollar rose 0.4 percent against the pound, forcing it below $1.29, and 0.3 percent against the euro, leaving the currency under $1.19 despite a jump in eurozone inflation."

The dollar rallied against the euro and yen -- considered a safe bet in times of crisis -- as Wednesday's strong data revived speculation that the Federal Reserve could consider lifting US interest rates for a third time this year. Eyes will now turn to the release of more jobs figures on Friday.

A closely watched private jobs creation reading that came out on Wednesday also exceeded market expectations.

New York's three main indices ended in positive territory on Wednesday and the dollar, which has recently come under pressure, jumped to life.

"The dollar thundered back to life augmented by startlingly positive US (growth) and labour market data," said Stephen Innes, head of Asia-Pacific trading at OANDA.

"Also, investors were quick to put the recent North Korean flare up in the rear view mirror as haven assets lost their endearment and US equity markets rebounded."

The weak yen supported Japanese exporters, with Tokyo's Nikkei ending 0.7-percent higher, while Sydney added 0.8 percent and Singapore gained 0.5 percent. Wellington and Taipei were also higher.

However, Shanghai dipped 0.1 percent as official figures showed a rise in Chinese factory activity in August but not strong enough to ease concerns about the world's number two economy, which is growing at its slowest pace in more than a quarter of a century.

Hong Kong eased 0.4 percent, with profit-takers also moving in after enjoying six days of gains in the previous seven trading days.

On oil markets, both main contracts climbed gently after Harvey has forced the temporary closure of dozens of refineries in the crude-rich Gulf.

 - Key figures around 1045 GMT - 

London - FTSE 100: UP 0.7 percent at 7,414.10 points

Frankfurt - DAX 30: UP 0.6 percent at 12,076

Paris - CAC 40: UP 0.8 percent at 5,094.80

EURO STOXX 50: UP 0.8 percent at 3,429.8

Tokyo - Nikkei 225: UP 0.7 percent at 19,646.24 (close)

Hong Kong - Hang Seng: DOWN 0.4 percent at 27,970.30 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,360.81 (close)

New York - Dow: UP 0.1 percent at 21,892.08 (close)

Euro/dollar: DOWN at $1.1856 from $1.1882 at 2100 GMT on Wednesday

Pound/dollar: DOWN at $1.2874 from $1.2924

Dollar/yen: UP at 110.56 yen from 110.29 yen

Oil - Brent North Sea: UP 25 cents at $51.11 per barrel

Oil - West Texas Intermediate: UP 25 cents at $46.21