Volkswacht Bodensee - Stocks jump as jobs data soothes US recession worries

Worries about the economic impact of interest rate hikes, including on mid-size US banks, had seen equities take a lashing on Thursday.

The world's biggest economy added 253,000 jobs last month, up from a revised 165,000 figure in March, the US Labor Department said.

The latest figures show that the labour market remains strong despite banking sector upheaval, higher borrowing costs and uncertainty surrounding a potential government default.

"The key takeaway from the report is that it substantiates why the Fed isn't inclined to cut rates soon, but at the same time the continued strength in the labour market... lends some hope to the idea that a soft landing for the economy is still possible," said Briefing.com analyst Patrick O'Hare.

The US Federal Reserve hiked interest rates on Wednesday by a quarter percentage point but signalled it could pause at its next meeting, as concern over the impact of higher interest rates on slowing the economy have mounted, particularly following the collapse of three mid-size banks in March and the failure of another one this week.

Investors have pondering whether the ongoing US banking rout will convince the Fed to begin cutting interest rates sooner than planned.

Shares in regional US lenders rebounded on Friday, with PacWest jumping 34 percent at the start of trading, after its shares lost half their value on Thursday.

Shares in Western Alliance rose 32.7 percent, after having slumped 38.5 percent.

Thursday's sell-off in PacWest had been exacerbated by media reports saying the bank was considering the possibility of a sale or other capital-raising measures in the wake of the recent collapse of other mid-sized lenders.

The bank sought to assure investors it had not "experienced out of the ordinary deposit flows" and that its "cash and available liquidity remains solid", but fears continued to fester.

"Traders are largely worried about the ongoing banking crisis in the US and, for them, it is difficult to see where the end of the road is," warned Zaye Capital Markets analyst Naeem Aslam.

Sentiment was also boosted after US tech titan Apple said first-quarter iPhone sales and services revenue beat forecasts, capping a successful earnings season for the sector.

Apple shares climbed 3.4 percent as trading got underway.

Wall Street's main indices climbed at the start of trading, with the Dow rising 1.0 percent.

Europe's main equity markets were higher in afternoon trading.

Back in Asia, Hong Kong stocks finished half a percent higher after paring early gains, with tech and property companies among the big winners.

Shanghai, however, shed nearly half a percent as fears of China's uneven recovery set in and a less than stellar earnings season failed to impress.

Oil prices jumped as recession concerns lessened, with the main US contract rising back above $80 per barrel.

- Key figures around 1330 GMT -

New York - Dow: UP 1.0 percent at 33,447.06 points

London - FTSE 100: UP 0.7 percent at 7,756.27

Frankfurt - DAX: UP 1.0 percent at 15,897.99

Paris - CAC 40: UP 1.0 percent at 7,410.52

EURO STOXX 50: UP 0.8 percent at 4,321.59

Hong Kong - Hang Seng Index: UP 0.5 percent at 20,049.31 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,334.50 (close)

Tokyo - Nikkei 225: Closed for holiday

Euro/dollar: DOWN at $1.0990 from $1.1012 on Thursday

Pound/dollar: UP at $1.2581 from $1.2574

Dollar/yen: UP at 134.81 yen from 134.29 yen

Euro/pound: DOWN at 87.32 pence from 87.58 pence

Brent North Sea crude: UP 3.4 percent at $74.98 per barrel

West Texas Intermediate: UP 3.7 percent at $71.09 per barrel

burs-rl/gil

J.Fankhauser--BTB