US jobs report pushes Wall Street higher

Blue chip stocks on Wall Street touched a three-year high as investors were heartened by signs of stronger job creation in the US and the lowest unemployment rate in two years.

The positive tone was set early in the session after better-than-expected non-farm payrolls, a tick down in the unemployment rate to 8.8%. Institute for Supply Management data showing manufacturing in expansion mode also helped put investors on the offensive.

The Dow Jones Industrials rose as high as 12,419.71, the highest since June 6, 2008.

At the close (9am NZT), it was up 56.99 points, or 0.5%, to 12,376. Coca-Cola and General Electric led the measure higher, each gaining 1.4%.

The S&P 500 index rose 0.5% to 1332.41, with consumer discretionary and financial stocks in the lead. The Nasdaq Composite added 0.3% to 2789.60.

Traders attributed the late-session paring in part to another advance for oil, which topped $US108 a barrel.

Other markets: Europe, Asia up
European markets started the new quarter strongly, with a lift from the results of Irish bank stress tests and a better-than-expected U.S. jobs report.

The Stoxx Europe 600 index rose 1.5% to 280.02. For the first quarter, the benchmark gained 0.03%.

Ireland's ISEQ index gained 2.3% to 2942.04 as the government announced plans for radically restructuring the banking sector by creating two major banks.

The German DAX 30 index, largely supported by financials, pharmaceuticals and autos, gained 2% to 7179.81. In Paris, the CAC 40 index gained 1.6% to 4054.76 and, in London, the FTSE 100 index gained 1.7% to end at 6009.92.

Chinese stocks rose to lead most Asian markets higher as manufacturing activity rose in March and strong recent earnings attracted buyers.

The Shanghai Composite index climbed 1.3% to 2967.41 and Hong Kong's Hang Seng index added 1.2% to 23,801.90.

Australia's S&P/ASX 200 rose 0.5% to 4861.80, Korea's Kospi edged up 0.7% to 2121.01 and Taiwan's Taiex gained 0.3% to 8705.13.

Japan's Nikkei Stock Average ended 0.5% lower at 9,708.39. Indian shares struggled to advance after rising in the previous eight sessions, with the benchmark Sensex falling 0.1% to 19,420.39.

Commodities: Oil rises, gold drops
Crude-oil futures rebounded from modest morning losses after the US dollar dipped on comments by the New York Federal Reserve chairman that it wasn't time yet to "reverse course" and tighten monetary policy amid a "tenuous" US recovery.

Light, sweet crude oil for May delivery in New York was up 34USc at $US107.06 a barrel. The contract had hit a 2½-year high of $US107.84 a barrel, but traders locked in profits when the futures prices failed to clear $US108.

Gold ended lower as the stronger-than-expected US jobs report deflated prices. The contract for April delivery slipped $US10.80, or 0.8%, to settle at $US1428.10 an ounce in New York.

Currencies: US dollar fall boosts euro
The euro reversed early losses against the dollar on the NY Fed chairman’s denial that monetary policy was to be tightened. This ran against recent speculation; low interest rates have undermined the dollar in a market aggressively pursuing higher-yielding assets.

The euro surged more than a cent on the day to trade above $US1.42, within striking distance of its November high around $US1.4249. It ended at $US1.4235 from $US1.4174 late on Thursday.

The dollar had more luck against the yen, hitting a 2011 high above ¥84, but off its strongest levels of the session near ¥84.75. It ended at ¥84.07 from late Thursday's ¥83.19.

The euro bought ¥119.70 from ¥117.91, the UK pound bought $US1.6119 from $US1.6044, and the dollar was at 0.9237 Swiss franc from 0.9184 franc.