"The US equity markets have turned higher in afternoon action, showing some resiliency in the face of a magnitude 8.9 earthquake that hit Japan and resulting tsunami," Charles Schwab analysts said in a client note.
In early trade stocks had fallen before recovering, but oil and commodity prices tumbled as traders struggled to measure the effects of a disaster in one of the world's most important and inter-connected markets.
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"Anyone who tells you that they have a handle on the economic consequences of this event is wrong," said Carl Weinberg, a top economist with High Frequency Economics, reflecting the market's nervousness.
"There is no way to assess even the direct damage to Japan's economy or to the global economy. This is a sad day for Japan, and economic aftershocks could affect the whole world's economy."
The Dow Jones Industrial Average closed 59.79 points higher (0.50 per cent) at 12,044.40 and the tech-focused Nasdaq Composite rose 14.59 points (0.54 per cent) to 2,715.61.
Meanwhile the broader S&P 500 was up 9.17 points (0.71 per cent) at 1,304.28.
With Japan tied into almost every sector of the global economy, the impact was immediately felt.
Toyota's US shares sank 2.1 per cent as the company announced production had stopped at plants in Hokkaido, Tohoku, Miyagi and Kanto.
With many Japanese ports shuttered, there were concerns that exports and imports would be affected.
"We are also currently assessing the situation at our suppliers, dealers and the impact on North American import vehicles," the firm said in a statement.
Toyota's US rival Ford saw its shares rise 2.1 per cent.
Maersk Line - which has the world's largest container fleet - said its offices in Tokyo and the massive port of Yokohama were closed.
United Continental, Google, Wal-Mart and Coca-Cola all posted losses.
Meanwhile crude prices sank as traders eyed lower consumption in Japan, the world's third-largest oil importer and consumer.
The disaster came a day after a massive Wall Street sell-off, caused by a wider-than-expected US trade deficit, a rare trade shortfall in China, new sovereign downgrades in Europe and turmoil in Saudi Arabia and Libya.
"The market's focus has completely changed," said David Campione of Briefing.com.
"Beyond the terrible human toll, the economic impact will be significant and could increase as there are tsunami warnings for Hawaii and the (US) West Coast."
So far there was only minimal damage from tsunami waves in California, with the Port of Oakland, near San Francisco, reporting only minor delays, helping reassure investors that major trade disruptions had been avoided.
"The United States Coast Guard suspended the transfer of fuel and hazardous materials, so vessels that were scheduled to take on fuel during this time will have to wait until the Coast Guard lifts the suspension," said spokesman Robert Bernardo.
Bond prices were mixed amid the nervousness. The yield for the 10-year Treasury bond rose to 3.40 per cent from 3.39 per cent late Thursday, while the 30-year bond's yield was steady at 4.54 per cent.
Bond prices and yields move in opposite directions.
