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GLOBAL MARKETS-Stocks, oil rally on U.S. jobs data, Korea news

Published 10/03/2018, 08:25 am
Updated 10/03/2018, 08:30 am
© Reuters.  GLOBAL MARKETS-Stocks, oil rally on U.S. jobs data, Korea news
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(Updates prices, changes comment)

* Global assets year-to-date http://tmsnrt.rs/2jvdmXl

* Wall St up as jobs jump, wage data soothes inflation worries

* Yen off as BOJ remains dovish

By Rodrigo Campos

NEW YORK, March 9 (Reuters) - Stock markets across the globe rose the most in two weeks on Friday after U.S. job growth posted a sharp, unexpected increase, while a planned meeting between U.S. President Donald Trump and North Korea's Kim Jong Un gave crude oil a further boost.

The yen fell broadly after the Bank of Japan stuck to its dovish policy stance and as Kim's pledge to refrain from further nuclear or missile tests during the proposed talks buoyed investor sentiment. the dollar was otherwise little changed despite the U.S. economy having added the largest number of jobs in more than 1-1/2 years in February, as slowing wage gains indicated only a gradual increase in inflation this year. Street led global equity gains as the U.S. labor data landed in a sweet spot for stock investors.

"You got sort of a Goldilocks report with stronger employment coupled with modest wage growth, but not enough that it forces the (Federal Reserve) to act more rapidly than they otherwise would," said Scott Clemons, chief investment strategist at Brown Brothers Harriman in New York.

The Dow Jones Industrial Average .DJI rose 440.53 points, or 1.77 percent, to 25,335.74, the S&P 500 .SPX gained 47.6 points, or 1.74 percent, to 2,786.57 and the Nasdaq Composite .IXIC added 132.86 points, or 1.79 percent, to 7,560.81.

The pan-European FTSEurofirst 300 index .FTEU3 ended up 0.41 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.12 percent, the most since Feb. 23.

Emerging market stocks rose 1.06 percent. Overnight, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.95 percent higher, while Japan's Nikkei .N225 rose 0.47 percent.

Crude prices rose alongside Wall Street, continuing their moves in tandem with the S&P 500. The 50-day correlation between WTI crude futures and the S&P has averaged over 0.8 so far this year.

The jobs report "speaks to strong, underlying economic conditions, and growth, which includes increased energy demand," said John Kilduff, partner at investment manager Again Capital in New York.

U.S. crude CLcv1 rose 3.28 percent to $62.09 per barrel and Brent LCOcv1 was last at $65.55, up 3.05 percent on the day.

YEN SLIDES, TREASURY YIELDS RISE

The yen fell sharply versus the U.S. dollar after the Bank of Japan stuck to its dovish policy stance and as Kim's denuclearization pledge boosted risk assets.

Still, the greenback slipped against a basket of currencies as the slow U.S. wage gains supported a view that the Federal Reserve would not quicken its pace of raising interest rates. Japanese yen weakened 0.56 percent versus the greenback at 106.83 per dollar. The dollar index .DXY fell 0.06 percent.

The euro EUR= was down 0.04 percent to $1.2305 while sterling GBP= was last trading at $1.3847, up 0.27 percent on the day.

The Mexican peso gained 0.14 percent versus the U.S. dollar at 18.63. The Canadian dollar rose 0.59 percent versus the greenback at 1.28 per dollar.

U.S. Treasury yields advanced across the board after the strong jobs data.

Benchmark 10-year notes US10YT=RR last fell 8/32 in price to yield 2.8938 percent, from 2.866 percent late on Thursday.

The 30-year bond US30YT=RR last fell 16/32 in price to yield 3.1589 percent, from 3.132 percent late on Thursday.

"The headline (payrolls) print is sort of a shockingly strong number, (and) the guts of the report are as good," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.

Spot gold XAU= added 0.1 percent to $1,322.91 an ounce. U.S. gold futures GCcv1 gained 0.17 percent to $1,323.90 an ounce.

Copper CMCU3 rose 1.82 percent to $6,957.50 a tonne.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets in 2018

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets in 2018

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

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