* Stocks rise as investors see bright side of jobs data
* Yen, bonds fall after U.S. jobs report eases fears
* Oil gains slightly, riding stocks higher on jobs data
(Updates with U.S. markets activity, changes dateline;
previous LONDON)
By Herbert Lash
NEW YORK, Sept 4 (Reuters) - Global equities rose and oil
prices edged higher on Friday after a report showed U.S. job
losses in August were the smallest in a year and the IMF raised
its forecast for world economic growth this year and next.
U.S. Treasuries slipped and gold eased back from its march
higher this week toward $1,000 an ounce after the jobs data
dimmed the allure of safe havens like government debt and
precious metals. For more see: [] [].
The yen, which has gained thanks to rising risk aversion,
also slipped after a Labor Department report showed U.S.
employers cut fewer jobs than expected in August, reinforcing
recent data pointing to an economic recovery. []
Other major currencies earlier had see-sawed as traders
said the jobs data was a mixed bag, with light trading ahead of
the U.S. Labor Day holiday adding to volatility.
European stocks closed higher on Friday, snapping four days
of losses, and U.S. stocks surged, with the benchmark S&P500
and tech-heavy Nasdaq climbing more than 1 percent each.
The U.S. jobless rate climbed to 9.7 percent in August, the
highest since June 1983. The increase suggests consumer
spending will remain weak and impede the U.S. economy's
recovery from the worst recession in seven decades.
However, employers cut 216,000 jobs last month, the
smallest losses since August 2008, even as payroll losses in
June and July were 49,000 more than initially estimated.
"I think there's a positive undertone to that report that
makes it hard to want to be short going into the weekend," said
Jim Paulsen, chief investment officer at Wells Capital
Management in Minneapolis.
"There's just so many people who want this to pull back and
there's just too much good data that won't allow it," he said.
Shortly after 1 p.m. (1700 GMT), the Dow Jones industrial
average <> was up 72.24 points, or 0.8 percent, at
9,416.85. The Standard & Poor's 500 Index <.SPX> was up 9.97
points, or 1 percent, at 1,013.21. The Nasdaq Composite Index
<> was up 28.28 points, or 1.4 percent, at 2,011.48.
The pan-European FTSEurofirst 300 <> index of top
shares closed up 1.3 percent at 962.42 in a choppy session.
The International Monetary Fund revised up its forecast for
the world economy this year and next, according to a document
obtained by Reuters.
The IMF now forecasts global shrinkage of 1.3 percent in
2009, a shade less than its April forecast of a 1.4 percent
contraction, and growth of 2.9 percent in 2010, revised up from
2.5 percent previously. []
Oil prices rebounded, lifted by a rising stock market.
U.S. crude <CLc1> rose 13 cents at $68.09 a barrel, while
London Brent crude <LCOc1> pared losses but was still down 28
cents at $66.84.
"We will take our cue from the stock market, but I don't
expect much unwinding ahead of a long weekend, with the
underlying concerns about the banking sector still out there,"
said Phil Flynn, analyst at PFGBest Research in Chicago.
The euro fell to $1.4307 <EUR=> but against the yen was up
at 133.01 yen <EURJPY=R>. The dollar was up about 0.3 percent
against the yen at 92.98 yen <JPY=>, after hitting a session
low of 92.26 yen immediately after the jobs data.
Volatile copper prices rose, with copper for three-month
delivery <MCU3> closing at $6,280 a tonne on the London Metal
Exchange.
Two-year euro zone government bond prices hit record highs
and yields historic lows as U.S. jobs data and euro zone
policymaker comments anchored expectations interest rates will
stay low for some time. []
"With the U.S. data we had today you're not looking at a
scenario that looks particularly recovery-like -- even if the
payrolls number was slightly better than expected," said Marc
Ostwald, strategist at Monument Securities.
Asian stock markets mostly edged higher, with MSCI's index
of Asia Pacific stocks traded outside Japan <.MIAPJ0000PUS> up
1.4 percent. The Nikkei index <> ended down 0.3 percent,
however, at a five-week closing low.
(Reporting by Chuck Mikolajczak, Wanfeng Zhou, Rebekah Kebede
and Burton Frierson in New York, and Jessica Mortimer and
Joanne Frearson in London; Writing by Herbert Lash; Editing by
James Dalgleish)
