GLOBAL MARKETS-Global stocks rally into U.S. jobs report amid surging commodity prices

* Asia stocks gain after Dow hits record on reflation trade
* Commodities soar to multi-year highs on global recovery
bets
* Dollar weakens, U.S. yields soften before Friday's jobs
data
* Gold trades above $1,800 amid outlook for higher inflation

By Kevin Buckland
TOKYO, May 7 (Reuters) - Global stocks headed for their
first weekly gain in three amid a surge in commodity prices,
while traders braced for a key U.S. jobs report later on Friday
that could provide clues on when the Federal Reserve will ease
back on monetary stimulus.
MSCI's benchmark for global equity markets .MIWD00000PUS ,
which tracks stocks in 50 countries, edged up about 0.1%, on
course for a 0.4% gain this week.
Its broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS ticked up by about 0.4% on Friday, with China's
blue chips .CSI300 and Japan's Nikkei .N225 each gaining
about 0.3%.
Aluminum prices approached levels last seen in 2018 and
copper CMCU3 flirted with 10-year peaks as investors bet on a
rapid global recovery from the pandemic, led by the United
States.
Overnight, Wall Street investors piled into
economically-sensitive stocks on the reflation trade, driving
the Dow Jones Industrial Average to a record high close on
Thursday.
The Dow .DJI rose 0.9%, the S&P 500 .SPX gained 0.8% and
the Nasdaq Composite .IXIC added 0.4%.
S&P futures EScv1 pointed to further gains, rising 0.2% on
Friday.
U.S. shares rallied, led by financials and industrials,
after a report showed the number of Americans filing new claims
for unemployment benefits fell below 500,000 last week for the
first since the COVID-19 pandemic started, signalling the labour
market recovery entered a new phase amid a booming economy.
The Russell 1000 Value index .RLV gained 0.8%, outpacing
the Russell 1000 Growth index .RLG , which rose 0.5%.
The focus now shifts to Friday's non-farm payrolls report,
with estimates ranging widely between 700,000 and more than 2
million jobs having been created in April.
"Get ready for payrolls, they could be huge," Chris Weston,
head of research at broker Pepperstone in Melbourne, wrote in a
note for clients.
"The commodity space is the talk," and financials are the
"bull play" going into the payrolls report, he said.
The safe-haven dollar sank to its lowest level this week
against a basket of major peers on Friday ahead of the jobs
report, as firmness in global stock markets boosted risk
appetite.
The dollar index =USD dipped to 90.837, and was on track
for a 0.4% decline this week.
Treasury yields hovered near the lowest level this month on
Friday, further removing support for the greenback, after bond
traders largely shrugged off the better-than-expected initial
jobless claims data and waited for the non-farm payrolls report
to provide market direction.
The 10-year Treasury note US10YT=RR yielded 1.5714% early
in the Asian session.
Gold XAU= headed for a 2.5% weekly gain, the most since
December, as the weaker dollar and easing Treasury yields
propelled the precious metal, an inflation hedge, above the key
$1,800 an ounce psychological level to last trade at $1,813.54.

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