GLOBAL MARKETS-Shares, crude prices rise on U.S., China data

(Adds close of U.S. markets)
* S&P 500, Nasdaq hit record highs on upbeat jobs report
* Global shares post biggest weekly gain since early
September
* Crude prices jump more than 3% on trade deal hopes
* Dollar eases as trade optimism reduces safe-haven appeal

By Herbert Lash
NEW YORK, Nov 1 (Reuters) - World equity markets surged and
crude oil prices jumped on Friday after a stronger-than-expected
U.S. employment report, a surprise bounce in Chinese
manufacturing and optimism over U.S.-China trade talks tamped
down fears of slowing global growth.
Equity markets in Europe and across the Americas rallied,
with the S&P 500 and Nasdaq hitting closing record highs and
MSCI's gauge of equity performance across the globe rising to
within 2.1% of its all-time peaks set in January 2018.
The strong U.S. and Chinese data and remarks that an initial
trade pact with China was near pushed up the price of oil,
overshadowing a Reuters survey that showed crude prices are
expected to remain under pressure through next year.
U.S. and Chinese negotiators had made "enormous progress"
toward reaching a "phase one" agreement, though the deal was not
yet 100% complete, White House economic adviser Larry Kudlow
told reporters. U.S. job growth slowed less than expected in October as the
drag from a strike at General Motors GM.N was offset by gains
elsewhere and hiring in the prior two months was stronger than
previously estimated, data from the Labor Department showed.
"This report isn't weak enough to signal caution or a
recession on the horizon," said Michael Arone, chief investment
strategist at State Street Global Advisors in Boston.
"But the jobs market still isn't strong enough to suggest
that the Fed or other central banks should be tightening
interest rates. Investors like that dynamic," he said.
The data should allay concerns about the health of the U.S.
consumer in the fourth quarter, said Yousef Abbasi, global
market strategist at INTL FCStone Financial Inc in New York.
"The numbers were better than expected; this bodes well for
the broader economy," Abbasi said, referring to the jobs report.
In China, the Caixin/Markit Manufacturing Purchasing
Managers' Index for October rose to 51.7 from 51.4 the prior
month, marking the third straight month of expansion. Economists
had expected a dip in growth to 51.0. The data lifted Chinese blue chips .CSI300 , which jumped
1.7% in their best day since mid-August. Seoul's Kospi .KS11
rose 0.8% and Hong Kong's Hang Seng .HSI added 0.7% on news of
the manufacturing report.
MSCI's gauge of stock performance in 47 countries
.MIWD00000PUS rose 0.81%, while the pan-European STOXX 600
index .STOXX closed up 0.68%.
On Bay Street in Toronto, the TSX composite index .GSPTSE
gained 0.67%, while in Mexico the Bolsa index .MXX rose 1.1%
and in Brazil the Bovespa .BVSP climbed 0.91%.
The S&P rose for the fourth straight week, its longest
streak since February, while the Nasdaq has gained the past five
weeks. Quarterly earnings have come in stronger than anticipated
and U.S.-China trade rhetoric has appeared to be productive.
On Wall Street, the Dow Jones Industrial Average .DJI rose
301.13 points, or 1.11%, to 27,347.36. The S&P 500 .SPX gained
29.35 points, or 0.97%, to 3,066.91 and the Nasdaq Composite
.IXIC added 94.04 points, or 1.13%, to 8,386.40.
For the week, the Dow rose 1.44%, the S&P 500 climbed 1.47%
and the Nasdaq rose 1.74%, spurred by corporate earnings.
About 76% of the 356 S&P 500 companies that have reported so
far have beaten profit estimates, according to Refinitiv data.
U.S.-China trade tensions have slowed global growth and
weighed on investor sentiment, with economic data showing
slowing manufacturing output.
The U.S. economy's manufacturing sector contracted for a
third straight month in October but at a slower pace than the
previous month, an index from the Institute for Supply
Management showed. N9N26901F
Both Brent, the global benchmark, and U.S. benchmark West
Texas Intermediate jumped more than 3%.
Brent crude LCOc1 rose $2.07 to settle at $61.69 a barrel,
while WTI crude CLc1 settled up $2.02 at $56.20 a barrel.
The dollar slid as optimism that the United States and China
will reach a deal to end their trade war reduced safe-haven
demand for the greenback.
The dollar index .DXY fell 0.13%, with the euro EUR= up
0.11% to $1.1162. The Japanese yen JPY= weakened 0.15% versus
the greenback at 108.21 per dollar.
Yields on U.S. government bonds rose after the jobs numbers
but later pared some of the gains after the Institute for Supply
Management's manufacturing indexes were weaker than forecast.
The benchmark 10-year U.S. Treasury note US10YT=RR fell
8/32 in price to push its yield up to 1.719%.
Euro zone government bond yields pushed higher on the
economic signals from U.S. data and Christine Lagarde began her
presidency of the European Central Bank. Most 10-year bond yields in the bloc rose around 2 basis
points on the day after striking two-week lows on Thursday.
Germany's 10-year Bund yield was at -0.38% DE10YT=RR .
Gold prices eased as the better-than-expected U.S.
employment report and strong factory data from China bolstered
sentiment for riskier assets.
Spot gold XAU= dipped 0.3% to $1,508.49 an ounce.

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