* Brazil up 3 pct after Lula detained in investigation
* Europe stocks up for 3rd week, best in 5 months for Asia
* Oil prices set to end week with strong gains
* Dollar falls on wage decline in U.S. payrolls
(Updates for U.S. markets, changes byline, dateline, previous
LONDON)
By Dion Rabouin
NEW YORK, March 4 (Reuters) - Stock markets worldwide edged
up on Friday, on pace for a fourth day of gains, as commodities
prices firmed and strong U.S. jobs growth bolstered confidence
in the global economy.
U.S. equity indexes advanced following February's jobs data,
which showed strong growth in payrolls and an increase in
labor-force participation, but a surprising decline in monthly
wage growth.
Nonfarm payrolls grew by 242,000 jobs last month, beating
forecasts for 190,000 new jobs, but wages dipped by 0.1 percent
after a strong January 0.5 percent increase.
"It's good news for the U.S. economy, but the lack of growth
in wages suggests the Fed should be in no rush to hike," said
Vassili Serebriakov, currency strategist at BNP Paribas (PA:BNPP) in New
York.
On Wall Street, the Dow Jones industrial average .DJI rose
74.19 points, or 0.44 percent, to 17,018.09, moving above 17,000
for the first time since Jan. 6. The benchmark S&P 500 .SPX
gained 8.89 points, or 0.45 percent, to 2,002.29, and the Nasdaq
Composite .IXIC added 16.80 points, or 0.36 percent, to
4,724.23.
Brazil's stock market rose to its highest in at least six
months after police detained former president Luiz Inacio Lula
da Silva for questioning in an investigation of a bribery and
money laundering scheme.
The Bovespa .BVSP gained 3 percent, though at its high it
had posted a 6 percent gain.
"Today Lula was arrested; maybe this is helping Brazilian
assets because of the idea that it will speed up the impeachment
process (of President Dilma Rousseff)," said Guillaume Tresca,
an emerging markets senior strategist of Credit Agricole (PA:CAGR) in
Paris.
"That is a very long process, but it could trigger political
change and that is the only hope right now."
U.S. benchmark Treasuries saw yields rise, led by
longer-dated securities, as the strong jobs figures fed
expectations for better growth but the lackluster wage data was
expected to keep any immediate Fed rate hikes at bay. The dollar
was weaker against the euro and yen.
Treasury yields were bolstered by the strong overall numbers
in the jobs report. The benchmark 10-year Treasury note
US10YT=RR fell 13/32 in price to yield 1.88 percent.
The yield on the three-, five- and seven-year Treasuries
were all trading near their highest in about a month after the
payrolls data. US/
The U.S. dollar fell, as the decrease in wage growth added
uncertainty about whether the Federal Reserve will raise
interest rates this year. Short-term rate indicators are pricing
in one rate increase by next March.
"Because the wages data were weak, the market does not need
to materially change its view on future Fed policy," said Shahab
Jalinoos, global head of FX strategy at Credit Suisse (VX:CSGN) in New
York.
MSCI's global gauge of stocks .MIWD00000PUS was up 0.3
percent to a new eight-week high. Asian shares closed with their
best week in five months and European stock markets were headed
for a third week of gains.
Emerging markets rose more than 1 percent for the second
straight day, with MSCI's emerging market stock metric .MSCIEF
up 1.25 percent.
Crude oil futures were on pace to make a second straight 6
percent weekly jump. Benchmark Brent futures LCOc1 were up 0.5
percent to $37.27, a two-month high. U.S. crude CLc1 rose 0.2
percent to $34.63. O/R
Iron ore .IO62-CNI=SI and copper CMCU3 both hit
four-month highs. MET/L
The dollar fell 0.4 percent against a basket of major
currencies .DXY as the euro rose back above $1.10 for the
first time since Feb. 26 EUR= . The dollar also fell against
the yen JPY= at 113.60 yen.
(Addtional reporting by Anirban Nag; Editing by Bernadette
Baum)