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

(Adds U.S. market open, byline, dateline; previous LONDON)
* S&P 500, Nasdaq hit record high on upbeat jobs report
* Global shares on course for fourth straight week of gains
* Crude prices rise on hopes for U.S.-China trade deal
* Dollars eases as trade optimism reduces safe-haven appeal
*

By Herbert Lash
NEW YORK, Nov 1 (Reuters) - World equity markets surged and
crude prices rose 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 record intraday highs and
MSCI's gauge of equity performance across the globe rising to
within 2.2% of its all-time high set in January 2018.
The strong U.S. and Chinese data and remarks by U.S.
Commerce Secretary Wilbur Ross that the "phase one" trade pact
with China appeared in good shape lifted crude prices,
overshadowing a Reuters survey that showed oil prices are
expected to remain under pressure through next year. 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 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 (PMI) 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 as they 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 gained 0.68%, while the pan-European STOXX 600
index .STOXX rose 0.72%.
On Bay Street in Toronto, the TSX composite index .GSPTSE
rose 0.6%, while in Mexico .MXX and Brazil .BVSP benchmark
indices gained almost 1%.
On Wall Street, the Dow Jones Industrial Average .DJI rose
242.54 points, or 0.9%, to 27,288.77, the S&P 500 .SPX gained
23.45 points, or 0.77%, to 3,061.01 and the Nasdaq Composite
.IXIC added 70.30 points, or 0.85%, to 8,362.66.
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 (ISM) showed. N9N26901F
Brent crude LCOc1 rose 75 cents at $60.37 a barrel, while
West Texas Intermediate crude CLc1 added 84 cents to $55.02 a
barrel. Both indexes were still lower for the week.
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 0.15%, with the euro EUR= up
0.11% to $1.1162. The Japanese yen JPY= weakened 0.03% versus
the greenback at 108.08 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
7/32 in price to yield 1.7155%.

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