* U.S. jobs data roars past expectations with 916,000 gain
* Dollar, bond yields edge up in light Good Friday trade
* Equity markets in Asia gain on recovery optimism
By Herbert Lash
NEW YORK, April 2(Reuters) - The dollar and the yield on the
benchmark Treasury note edged higher in light trading on Friday
after data showing a surge in the hiring of Americans in March
pointed to a U.S. economic recovery that is poised to be the
strongest in decades.
Equity markets were closed in observance of Good Friday in
the Americas, Europe and elsewhere but it is not a U.S.
government holiday and the Labor Department released the closely
watch non-farm payrolls report. The U.S. economy added 916,000 jobs in March, more than
economists' forecast of 647,000, and the unemployment rate fell
to 6.0% from the previous month's 6.2%. Jobs numbers for
February were revised upwards according to the jobs report.
Futures for the S&P 500 stock index extended gains to 0.43%
after the report.
Despite the strong numbers the data will not alter the
Federal Reserve's stance on monetary policy, said Steven
Ricchiuto, U.S. chief economist at Mizuho Securities USA in New
York.
"The economy's bouncing back, but it's not producing the
things that are going to change the direction of monetary
policy," Ricchiuto said. "We're going to test the 1.77% level
(in the 10-year Treasury note), but I'm not sure it's going to
break (through) on this number."
The 10-year U.S. Treasury US10YT=RR note rose 3.9 basis
points to yield 1.7179%, but this was still below a 14-month
high of 1.776 hit on Tuesday. US/
Treasury yields have spiked on the economic outlook spurred
by U.S. President Joe Biden's plans for $2.3 trillion in
infrastructure spending and the accelerating rollout of COVID-19
vaccines.
The March labor market report is the first of what are
likely to be several very strong jobs reports over the next few
months, said Russell Price, chief economist at Ameriprise
Financial Services Inc in Troy, Michigan.
"The outlook looks very good," Price said. But "in my mind
the biggest constraint could be the ability of the supply side
of the economy to fulfill consumer wishes."
Asian markets overnight rose as optimism over a global
economic recovery lifted equity markets in Japan, China and
South Korea.
The Nikkei in Tokyo hit a two-week high, with semiconductor-
related shares leading the market as the industry looks to boost
manufacturing amid a global shortage of chips.
Biden's spending plan includes $50 billion for chip
manufacturing and other technology research, said Fumio
Matsumoto, chief strategist at Okasan Securities. China stocks posted a second weekly gain as recent data
pointed to a solid recovery in the world's second-largest
economy. Both the CSI300 index .CSI300 and the Shanghai
Composite Index closed at an almost four-week highs.
Chinese steel rebar and hot-rolled coil prices closed at
record highs after China on Thursday announced a nationwide
investigation into steel capacity cuts launched in 2016 as part
of efforts to ensure output falls this year.
South Korean shares closed higher to clock their biggest
weekly gain in nearly two months as optimism about a
stimulus-fueled economic recovery lifted equities.
Stocks rose on Wall Street on Thursday, with the S&P 500
index hitting a fresh peak as it scaled the 4,000 mark, and the
benchmark Deutsche Boerse DAX .GDAXI index in Germany as
setting a new high. Equities rose on reports of the strongest
manufacturing data in decades around the world.
The dollar index =USD rose 0.127%, with the euro EUR=
down 0.14% to $1.1759. The Japanese yen JPY= weakened 0.07%
versus the greenback at 110.67 per dollar.
Spot gold prices XAU= fell 0.08% to $1,728.84 an ounce.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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(Editing by Chizu Nomiyama)