US Republican presidential candidate Mitt Romney tapped Jewish-American donors for $1 million (£637,000), ending a trip to Israel that aimed to show he would be a better ally than President Barack Obama.

After days in which he spoke mostly on foreign policy issues, the fundraiser returned him to more comfortable turf – the state of the US economy. "What we are seeing now are policies that have not worked for the American people, and will not work," Mr Romney said.

It was the second fundraiser of Mr Romney's trip abroad. He picked up $2m in London as the candidates compete for cash for the expected multi-million-dollar burst of political TV ads in the last 100 days of the campaign.

He received a warm welcome from Israeli Prime Minister Benjamin Netanyahu as he tried to portray himself as a better friend of the Jewish state than Mr Obama. While Mr Romney carried a clear pro-Israel message, he also noted a "stark difference" in the average incomes of Israelis and Palestinians

Palestinian PM Salam Fayyad, who held a brief meeting with Romney on Sunday, said they had discussed "the peace process and the economical challenges in Palestine."

But Palestinians accused Mr Romney of undermining peace prospects by calling Jerusalem "the capital of Israel," ignoring their own claims to the city.