World stocks up as US job data lift recovery hopes

[March 08, 2010]  HONG KONG (AP) -- World stock markets gained Monday as a better-than-expected report about the U.S. job market lifted confidence in the economic recovery.

Major Asian bourses added as much as 2 percent in the region's second day higher. The euro got a boost after France voiced support for debt-laden Greece, while oil prices pushed past $82 a barrel.

As in the U.S., investors in Asia welcomed Friday's news the U.S. economy shed fewer jobs than expected last month. Employers slashed 36,000 jobs last month, better than the 50,000 cuts predicted.

While still up from the 26,000 lost in January, the figures provided evidence the labor market, one of the most-watched gauges of economic health, was on the mend. The unemployment rate was unchanged at 9.7 percent.

"Employment is now very close to stabilizing, although eight months after the recession ended that is hardly a cause for celebration," researchers at Capital Economics said in note.

Investors were also encouraged after French President Nicolas Sarkozy promised European support for Greece through a debt crisis that has jeopardized all 16 nations in the common currency.

In Europe, Britain's FTSE 100, Germany's DAX and France's CAC-40 were up by about 0.2 percent each. Wall Street futures pointed to a slightly higher open in the U.S. Monday.

Japan's Nikkei 225 stock average rose 216.96 points, or 2.1 percent, to 10,585.92 and Hong Kong's Hang Seng jumped 408.90 points, or 2 percent, to 21,196.87.

South Korea's Kospi added 1.6 percent. Elsewhere, Australia's market was up 0.9 percent, Shanghai shares gained 0.7 percent and Indian stocks were 0.6 percent higher.

In oil, benchmark crude for April delivery rose 53 cents to $82.03 a barrel. The contract rose $1.29 to settle at $81.50 on Friday.

The dollar was lower at 90.24 yen from 90.44 yen. The euro rose to $1.3676 from $1.3629.

Friday on Wall Street, the Dow rose 122.06, or 1.2 percent, to 10,566.20, its highest close since Jan. 20. It was the Dow's best point and percentage gain since Feb. 16.

The Standard & Poor's 500 index rose for a sixth straight day, rising 15.73, or 1.4 percent, to 1,138.70. The Nasdaq composite index added 34.04, or 1.5 percent, to 2,326.35.

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.