World markets mixed ahead of US jobs report

By KELLY OLSEN AP Business Writer

SEOUL, South Korea (AP) - Asian markets advanced Friday on the back of Wall Street's rally after upbeat economic figures revived confidence about the state of the American economy. But European stocks were little changed amid caution ahead of a key U.S. jobs report.

Every major benchmark in Asia turned higher, with Japan's Nikkei 225 stock average up 0.7 percent to 9,789.35 and Hong Kong's index gaining 1.6 percent to 21829.72. South Korea's benchmark rose 1.3 percent to 1,572.46.

As trade got under way in Europe, Britain's main index was off 0.1 percent while benchmarks in Germany and France ticked up 0.1 percent.

The spark for Thursday's rally in the U.S. was news the number of recently laid off workers seeking jobless benefits fell last week to the lowest level since January. Signs U.S. retail sales were on the rise also helped relieve worries about the financial health of American consumers that have dogged investors in recent months.

"That means the economy is actually recovering better than people thought," said Jackson Wong, vice president at Tanrich Securities in Hong Kong. "If the U.S. is doing well, everyone would be doing well."

Elsewhere in Asia, Australia's benchmark jumped nearly 2 percent as the country's central bank more than tripled this year's growth forecast to 1.75 percent from 0.5 percent and strongly hinted at more rate hikes.

After solid gains in early Asian trade, however, investors appeared to tread cautiously as they awaited last month's data on U.S. jobs. Wall Street futures pointed to a lackluster open Friday, with Dow Jones futures off 0.1 percent at 9,945 points and Standard & Poor's futures unchanged.

Analysts say the U.S. report is expected to show unemployment in the world's largest economy rose to 9.9 percent last month. Though the U.S. technically started growing in the third quarter after shrinking for a year, the unemployment rate has been rising steadily and is widely seen surpassing 10 percent as companies remain skittish about hiring amid a shaky economy.

The figure is closely watched because it has a strong impact on national sentiment. Consumers are unlikely to spend aggressively until the economy stops losing jobs, meaning lower demand for exports from Asia and other regions.

Overnight in the U.S., the New York, the Dow Jones index rose 203.82, or 2.1 percent, to 10,005.96, its first close above 10,000 since Oct. 22 and marking the biggest advance in nearly four months.

The broader S&P 500 index added 20.13, or 1.9 percent, to 1,066.63.

Among Asian stocks, Toyota Motor Corp. fell 1.7 percent in Tokyo despite reporting a surprise profit in the latest quarter and cutting its projected red ink for the year by more than half.

Crude prices rose in Asia as the surge in stock markets boosted oil investors' appetite for risk. Benchmark crude for December delivery was up 47 cents to $80.09 a barrel; the contract fell 78 cents overnight.

Gold rose $4.3, or about 0.4 percent, to $1,093.6 an ounce.

The dollar slipped to 90.46 yen from 90.78 yen. The euro rose to $1.4875 from $1.4866.