(Corrects to Labor Department in paragraph 2)
* Dollar climbs vs euro, yen after U.S. jobs data
* U.S. stocks edge up after strong payrolls data, Europe
* Bond prices sink as U.S. jobs growth surges past
* Oil near four-month lows as Iran nuclear deal looms
By Herbert Lash
NEW YORK, Nov 8 An unexpected surge in U.S. jobs
growth during October boosted the dollar and sent U.S. Treasury
bonds sharply lower on Friday by raising expectations the
Federal Reserve could begin scaling back its economic stimulus
as soon as December.
The Labor Department said there was no "discernible" impact
on payrolls from the 16-day federal government shutdown last
month. Employers added 204,000 new jobs, well above forecasts of
125,000, but the unemployment rate rose to 7.3 percent.
The department also revised upward by 60,000 its previous
payroll reports for September and August.
"It's an impressively strong jobs number in the face of a
government shutdown and underlying weakness in the U.S.
economy," said Richard Franulovich, senior currency strategist
at Westpac. "I have been dismissive of a December taper from the
Federal Reserve, and now it looks like a possibility."
The dollar rose broadly, reversing a recent trend in which
it has fallen on speculation the Fed would not start reducing
its $85 billion a month in bond purchases until next year.
A Fed cutback at a time when the European Central Bank and
Bank of Japan are in easing mode would boost the dollar's
U.S. stocks rose, shaking off an initial drop in futures
after the unexpectedly strong payrolls report increased chances
the Fed could soon scale back its stimulus, which has helped
propel U.S. equities to record highs this year.
The dollar index, which tracks the greenback versus a
basket of six currencies, rose 0.61 percent to 81.338, edging
back toward a near two-month high of 81.46 on Thursday.
The euro fell 0.57 percent to $1.3341, having hit a
session low of $1.3355, according to Reuters data.
U.S. Treasury prices fell. The benchmark 10-year U.S.
Treasury note was down 36/32 in price to yield
The Dow Jones industrial average was up 78.73 points,
or 0.50 percent, at 15,672.71. The Standard & Poor's 500 Index
was up 11.28 points, or 0.65 percent, at 1,758.43. The
Nasdaq Composite Index was up 38.86 points, or 1.01
percent, at 3,896.19.
In Europe, the pan-regional FTSEurofirst 300 index
fell 0.21 percent to 1,294.28. MSCI's all-country world index
lost 0.12 percent.
Brent crude oil steadied under $104 a barrel, close to its
lowest since early July, as Western powers stepped up efforts to
reach a deal with Iran over its nuclear program that could
provide some relief from sanctions.
Brent was up 34 cents at $103.80 a barrel. U.S. oil
was up 2 cents at $94.22 a barrel.
(Additional reporting by Richard Hubbard in London; Editing by