GLOBAL MARKETS-Stocks climb, shaking off U.S. jobs data, thanks to China trade relief

(Adds U.S. market open, byline, dateline)
* China exports rise 3.5% y/y vs forecast -15.7%
* Weekly U.S. initial jobless claims reach 3.169 million
* Long-term U.S. yields lifted by tidal wave of new debt
* Turkey's lira slumps to record low
* Oil swings around $30 a barrel

By Imani Moise and Marc Jones
NEW YORK/LONDON, May 7 (Reuters) - World shares rose on
Thursday after Chinese exports proved far stronger than
expected, while the U.S. dollar climbed to two-week highs on its
safe-haven status after another report showed millions more
Americans took unemployment aid.
Initial U.S. jobless claims for state unemployment benefits
totalled a seasonally adjusted 3.169 million for the week ended
May 2, down from a revised 3.846 million in the prior week, the
Labor Department's weekly jobless claims report showed.
The data reinforced economists' expectations of a protracted
recovery for the U.S. economy, which is reeling from nationwide
lockdowns to slow the spread of the coronavirus pandemic.
"The pace is slowing down, which is providing some optimism
that we are finally going to see things bottom out," said Ed
Moya, senior market analyst at OANDA, referring to unemployment
claims.
Stocks globally were bolstered by Beijing reporting a 3.5%
rise in exports in April from a year earlier, confounding
expectations of a 15.1% fall and outweighing a 14.2% drop in
imports. The unexpected strong showing boosted speculation China
could recover from its coronavirus lockdown quicker than
expected and support global growth in the process.
The Dow Jones Industrial Average .DJI rose 276.02 points,
or 1.17%, to 23,940.66, the S&P 500 .SPX gained 33.9 points,
or 1.19%, to 2,882.32 and the Nasdaq Composite .IXIC added
86.21 points, or 0.97%, to 8,940.59.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.73%.
The news also helped Japan's Nikkei .N225 and Seoul's
Kopsi .KS11 shake off early wobbles in Asia, and Europe's main
London .FTSE , Paris .FCHI and Frankfurt .GDAXI markets
extended gains, putting all of them roughly 1% higher. .EU
"It's clear that this virus has gone from east to west and
we are now seeing that in the data," said Societe Generale's Kit
Juckes, pointing to the China numbers and relatively better
purchasing managing data in countries such as Australia.
But with the full economic impact of the novel coronavirus
pandemic still to be seen and huge amounts of debt potentially
pushing up borrowing costs, "the market is hugely split between
die-hard bears and buy-on-dip buyers", he added.
Markets had traded cautiously overnight with renewed
Sino-U.S. tensions lurking in the background.
U.S. President Donald Trump said he would be able to report
in about a week or two whether China is meeting its obligations
under a trade deal, as Washington weighed punitive action
against Beijing over its handling of the coronavirus outbreak.
The flow of economic data remained grim, with U.S. private
employers laying off 20 million workers in April and the Bank of
England warning that the coronavirus crisis could cause the
country's biggest economic slump in 300 years.
"Despite their dizzying rally, we continue to be cautious on
equities in the near term," Luca Paolini, chief strategist at
asset manager Pictet said. "Markets seem to be overestimating
the speed of economic recovery."
WORLD'S BIGGEST BORROWER
Bond markets saw one of the largest shifts in a while after
the U.S. Treasury said it would borrow $2.999 trillion during
the June quarter, five times more than the previous
single-quarter record. US/
It will sell $96 billion next week alone and a surprising
amount of that will be at longer tenors, which in turn pushed up
long-term yields and steepened the curve.
The 30-year bond US30YT=RR last rose 31/32 in price to
yield 1.3765%, from 1.413%.
The early rise in Italy's yields to over 2% reflected
worries caused by a German court ruling this week targeting the
European Central Bank's bond purchase programme.
The rise in U.S. yields gave a lift to the U.S. dollar
versus most currencies. The dollar index =USD rose 0.19%, with
the euro EUR= down 0.26% to $1.0766. The euro was hurt by a
gloomy economic outlook from the European Commission.
In commodity markets, gold XAU= had eased on expectations
that supplies will grow as bullion refineries resume operations
but turned higher to add 0.6% to $1,694.91 an ounce during early
U.S trading. GOL/
Oil prices swung from down 1% to up more than 6% after a
six-session streak of gains which has seen Brent almost double
from a 21-year low hit in April. O/R
U.S. crude CLc1 recently rose 6.88% to $25.64 per barrel
and Brent LCOc1 was at $30.70, up 3.3% on the day.

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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Stocks and oil lift out of coronavirus slump IMAGE https://tmsnrt.rs/2W6G3f2
Turkey eroding financial buffer png https://tmsnrt.rs/3bR8V0k
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