World stocks rise as US jobs machine calms slowdown fears

Markets are betting on another Federal Reserve rate cut

Global stock markets rose on Friday, their mood lifted by US jobs data assuaging fears of a slowdown in the world's top economy, analysts said.

American employers added a total of 136,000 net new positions in September, below expectations.

But whatever disappointment the data brought was offset by an upward revision in August figures and another drop in the unemployment rate, to a 50-year low. Wage growth was weak, however.

Analysts said the jobs report was "mixed", and kept expectations of a Federal Reserve rate cut very much alive.

The Fed has "enough ammunition to commit to another rate cut," judged Edward Moya at Oanda.

The central bank may, however, hold off from promising an entire easing cycle when Fed chiefs meet later this month, he said.

- 'Some relief' -

Markets appeared "to find some relief" from the jobs report, and went some way towards easing fears of a recession, said analysts at Charles Schwab.

In Europe, stocks were jolted out of earlier softness by the data to end the week firmly in the black, while Wall Street was also stronger in the late New York morning.

Traders reported investors switching out of Treasury bonds and gold into stocks as some appetite for risk returned.

Still, many remained worried by earlier data suggesting that the US is now feeling the effects of its long-running trade war with China.

On Thursday a measure of the crucial services sector came in at its lowest for three years.

"There was nothing in the US employment report published today to change our view that the US economy will slow further and that the Fed will cut rates only one more time in this cycle," said Hubert de Barochez at Capital Economics.

The dollar fell against both the euro and the yen as rate cut expectations took hold, with only the Brexit-ridden pound failing to outperform the greenback.

- Hong Kong sinks -

Earlier, stock markets in Asia finished mostly lower, with Hong Kong marking the heaviest drop. Property firms were among the worst hit, as demonstrators took to the streets again to protest the imposition of a law banning face masks following months of sometimes violent protests.

Mumbai fell 0.7 percent after the Indian central bank announced a rate cut as expected but slashed its economic growth outlook. Shanghai was closed for a holiday.

Hong Kong sank 1.1 percent as the city's government announced the face mask ban as it looks to quell the demonstrations that have rocked the economy.

But there are worries that the rarely-used colonial-era emergency power could lead to further confrontations or more, stricter laws later.

- Key figures around 1540 GMT -

London - FTSE 100: UP 0.9 percent at 7,155.38 points (close)

Paris - CAC 40: UP 0.9 percent at 5,488.32 (close)

Frankfurt - DAX 30: UP 0.7 percent at 12,012.81 (close)

EURO STOXX 50: UP 0.9 percent at 3,446.71

New York - Dow: UP 0.9 percent at 26,430.90

Tokyo - Nikkei 225: UP 0.3 percent at 21,410.20 (close)

Hong Kong - Hang Seng: DOWN 1.1 percent at 25,821.03 (close)

Shanghai - Composite: Closed for a public holiday

Euro/dollar: UP at $1.0985 from $1.0965 at 2100 GMT

Pound/dollar: DOWN at $1.2297 from $1.2332

Dollar/yen: DOWN at 106.85 yen from 106.92 yen

Brent North Sea crude: UP 1.5 percent at $58.56 per barrel

West Texas Intermediate: UP 0.9 percent at $52.93