* European stocks up for third week, best in 5 months for
Asia
* Emerging markets recovering, Brazil leads with Rousseff
reeling
* Oil prices set to end week with strong gains, dollar up
* Payrolls seen showing 190,000 jobs added, unemployment
steady
By Marc Jones
LONDON, March 4 (Reuters) - The best week for Asian shares
in five months and the second six percent weekly jump in a row
in oil prices put global markets in a buoyant mood on Friday,
ahead of closely-followed monthly U.S. jobs data.
European shares and Wall Street were both headed for their
third week of gains with the FTSEurofirst up 0.7 percent and
futures prices predicting a 0.2-0.3 percent post-payrolls rise
when trading gets underway in New York. .EU .N
Solid results for the world's largest advertiser WPP WPP.L
had dovetailed with the latest tick-up in commodities markets
and hopes for another shot of European Central Bank stimulus
next week to put Europe on track for a 3.5 percent weekly rise.
Investors seem to have put recent worries about a potential
global recession firmly behind them for the moment and the U.S.
'non-farm' payrolls numbers at 1330 GMT are expected to show the
labour market in the world's largest economy ticking along
nicely.
A Reuters poll of economists forecasts them to show 190,000
jobs were added last month and that the overall unemployment
level staying at an eight-year low of 4.9 percent.
"We didn't believe the 'world is going to end' story, but
the way the mood has changed in the last couple of weeks is just
crazy," said Janus Capital portfolio manager and global research
analyst Ryan Myerberg.
"Since the beginning of the year it has been like driving
down the motorway where every couple of miles a tractor has
overturned, whether that be China, oil, the banks, that you have
to swerve around."
The dollar was grinding sideways as traders opted for
caution over valour know a good payrolls number later will, as
Myerberg at Janus expects, support the Federal Reserve's case to
increase U.S. rates again later in the year.
The greenback was flat against a basket of major currencies
as the euro nudged back to $1.0970 EUR= just above where it
started the week and the yen JPY= steadied at 113.74.
Traders also locked in some profits on sterling GBP=D4
having seen it bounce back almost 2 percent this week from last
month's 5 percent 'Brexit' battering.
In the bond markets, investors were also beginning to head
to the sidelines.
U.S. Treasuries were flat in both the 2- and 10- year space,
German Bund yields DE10YT=TWEB bobbed up marginally and
Portugal's yields ticked higher ahead of the first of a number
of back-to-back credit rating reviews later. GVD/EUR
SURGING EMERGING
The return of risk appetite was closely tracking the
recovery in oil and other commodity prices, although save-haven
favourite gold remained an outlier as it consolidated a 13-month
high. GOL/
Benchmark Brent futures LCOc1 were at two-month highs of
$37.48 per barrel as they headed for a gain of 6.6 percent this
week and industrial metals iron ore .IO62-CNI=SI and copper
CMCU3 both hit 4-month highs, with the latter on course for
its best week in roughly six months. MET/L
"Now you have had some stability in the oil price and some
producer currencies, you're starting to get more robust cost
bases forming for commodities, which suggests that the
vulnerability of metals to more downside is slowing," said Mark
Keenan at Societe Generale (PA:SOGN) in Singapore.
Emerging markets stocks were roaring too. MSCI's 23-country
EM index rose 0.6 percent for a sixth day of gains, its longest
winning streak and best week since October. EMRG/FRX
Russian markets remained on a red hot streak as the rise in
oil and easing inflation worries sent yields on Russian
government bonds RU10YT=RTR to their lowest in a year and a
half.
Brazil's Bovespa index .BVSP had surged more than 5
percent on Thursday, its biggest gain in six years, on news that
President Dilma Rousseff could be implicated in a sweeping
corruption scandal.
That encouraged investors who blame her administration's
policies for driving Brazil into deep recession.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS ended the week at its highest in almost two
months. Another 0.6 percent rise saw it chalk up a 5.5 percent
gain for the week, its strongest since October.
Japan's Nikkei was up 5 percent on the week too, while the
two main Chinese share markets .SSEC .CSI300 took their
gains since Monday to 4.7 and 3.5 percent.
Investors are awaiting the start of the annual meeting of
China's parliament on Saturday, which will map out economic
goals for the next five years, with markets hoping for enough
stimulus to fend off any major slowdown worries.
The People's Bank of China set the midpoint rate CNY=SAEC
at 6.5284 per dollar prior to Friday's market open, 0.20 percent
firmer than the previous fix.