* U.S. stock futures up 0.5%, Nikkei up
* Short-term U.S. debt up, markets bet on 2022 rate hike
* Global asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh
By Hideyuki Sano
TOKYO, April 5 (Reuters) - Global stock prices rose to a 1
1/2-month high on Monday after data showing a surge in U.S.
employment while short-dated U.S. bonds came under pressure on
worries the Federal Reserve may bump up interest rates sooner
than it has indicated.
U.S. S&P500 futures ESc1 traded 0.5% higher, maintaining
their gains made during a truncated session on Friday while
Japan's Nikkei .N225 rose 0.8%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was almost flat, with China closed for
Tomb-Sweeping day and Australia on Easter Monday.
MSCI's all-country world index .MIWD00000PUS was almost
flat but stood near its highest level since late February and
within sight of a record high set that month.
The U.S. labour department said on Friday that nonfarm
payrolls surged by 916,000 jobs last month, the biggest gain
since last August. That was well above economists' median forecast of 647,000
and was closer to markets' whisper number of one million. Data
for February was also revised higher to show 468,000 jobs
created instead of the previously reported 379,000.
"The data confirmed that the U.S. economic activity is
coming back as coronavirus vaccinations are well under way,"
said Masahiro Ichikawa, chief strategist at Sumitomo Mitsui DS
Asset Management.
While employment remains 8.4 million jobs below its peak in
February 2020, an accelerating recovery raised hopes the all the
jobs lost during the pandemic could be recouped by the end of
next year.
The prospects of a return to a full employment, in turn,
raises question about whether the Fed can stick to its pledge
that it will keep interest rates through 2023.
Markets have strong doubts, with Fed funds futures FFZ2
FFF3 fully priced in one rate hike by the end of next year.
"Markets are surely not convinced that the Fed can be that
relaxed when we have very strong jobs data while the government
is proposing another massive stimulus," Sumitomo Mitsui's
Ichikawa said.
The two-year U.S. Treasury yield rose to 0.186% US2YT=RR ,
near its eight-month peak of 0.194% touched in late February.
Yields on longer-dated bonds were more subdued, with 10-year
notes yield slipping to 1.706% US10YT=RR on Monday, giving up
a part of its 4-basis-point rise made on Friday following the
job report.
The strong jobs data helped to underpin the dollar.
The greenback traded at 110.72 yen JPY= , near Wednesday's
one-year peak of 110.97. The euro stood at $1.1762 EUR= .
In crypto assets, ether ETH=BTSP held at $2,075.67 near
Friday's record peak of $2,144.99. Bitcoin stood at $58,146
BTC=BTSP after 4.3% gains last week.
Oil prices dipped after OPEC+ agreed last week to gradually
ease some of its production cuts between May and July.
U.S. crude futures CLc1 fell 0.5% to $61.16 per barrel.
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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
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