* Strong jobs growth sends dollar up vs yen
* U.S. stocks set new record highs on jobs data
* Brent rises above $104, U.S. unemployment at 4-year low
* Government debt slumps on strong U.S. jobs report
By Herbert Lash
NEW YORK, May 3 The U.S. dollar rose over 1.0
percent against the yen and global equity markets rallied on
Friday, pushed higher by an American labor report showing
stronger jobs growth in April than expected, data that lifted
U.S. stocks to a new record high.
U.S. nonfarm payrolls rose 165,000 last month and the
jobless rate fell to a four-year low of 7.5 percent, the Labor
Department said. Economists expected payrolls to rise 145,000
and the unemployment rate to hold steady at 7.6 percent.
Wall Street stocks surged at the open and European shares
rallied more than 1.0 percent on news of the resilient U.S.
labor market. The drop in the U.S. jobless rate reflected a gain
in employment, rather than people leaving the workforce.
The benchmark S&P 500 stock index broke through the 1,600
mark for the first time, and the Dow was less than 50 points
from surpassing the 15,000 mark as both indices set record
Crude oil, copper and other commodities' prices also
rallied, while government debt slumped on the data.
"The employment number was definitely the trigger for
today's rally," said Michael Korn, president at Skokie Energy in
Princeton, New Jersey.
The Dow Jones industrial average was up 134.81
points, or 0.91 percent, at 14,966.39. The Standard & Poor's 500
Index was up 16.01 points, or 1.00 percent, at 1,613.60.
The Nasdaq Composite Index was up 34.74 points, or 1.04
percent, at 3,375.37.
In Europe, the FTSEurofirst 300 of leading shares
rose 1.13 percent to 1,220.16, while MSCI's all-country world
equity index rose 0.83 percent to 371.0.
The dollar rose 1.2 percent to 99.15 yen, on pace for
its biggest one-day rise in two weeks, while the euro rebounded
a day after President Mario Draghi of the European Central Bank
said it was technically ready for negative deposit rates.
The euro was up 0.44 percent to 1.3121.
German Bund futures fell to a session low of
146.20, down 96 ticks on the day.
The benchmark 10-year U.S. Treasury note was
down 25/32 in price to yield 1.709 percent.
Brent crude was up $1.02 at $103.87 a barrel, while
U.S. crude gained 93 cents to $94.92 a barrel.
"The idea that the employment is holding as well as it is in
the face of the fiscal headwinds the economy is currently
enduring is a very positive sign of the economy's underlying
fundamental improvements," said Russell Price, a senior
economist at Ameriprise Financial Services.
The better jobs data comes just a month after the Bank of
Japan promised to inject about $1.4 trillion into its economy to
spur growth and end decades of deflation.