* U.S. stocks, dlr rises; jobs data fuel stimulus bets
* World stocks rise for fourth consecutive day
* U.S. crude futures slump; U.S. Treasuries fall
(Recasts, updates prices, adds comments, changes byline,
dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 6 (Reuters) - Global stocks rose on Friday
while the dollar gained against the yen, as a bleak report on
the U.S. jobs market stoked expectations the U.S. Congress will
move quickly to approve a stimulus plan to help the economy.
U.S. non-farm payrolls lost 598,000 jobs in January, more
than expected and the largest contraction in 34 years. The
unemployment rate also shot up to 7.6 percent, the highest in
16 years.
Approval of the U.S. stimulus package should minimize the
impact of a deepening recession and set the stage for a
recovery later this year, analysts said. That boosted sentiment
in stocks worldwide as global investors looked to the United
States to lead in pulling the world out of a deep downturn.
"Global markets further stabilized as the escalating
superlatives in the U.S. unemployment gloom increase the
likelihood that the Senate will pass the $920 billion fiscal
stimulus package as early as today," said Ashraf Laidi, chief
market strategist, at CMC Markets in London.
"Although the stimulus package would justify new record
borrowing by the U.S. Treasury, which is a negative for the
structural dollar outlook, markets are focusing on the impact
on the economy from an aggregate demand perspective."
The Dow Jones industrial average <> jumped 2.2 percent
to 8,237.89 and the Nasdaq Composite Index <> gained 2.0
percent to 1,577.77.
The Standard & Poor's 500 Index <.SPX> shot up 1.9 percent
to 862.26. The S&P 500 is now off about 4.5 percent since the
start of 2009, but has risen about 16 percent since the bear
market low hit in November.
MSCI's all-country world equity index <.MIWD00000PUS> was
up 1.9 percent, its fourth gain in as many days and its seventh
in the past 10. The index's emerging market counterpart
<.MSCIEF> was also up sharply, rising 3.8 percent on the day.
The U.S. Senate was due to resume debate on a $900 billion
stimulus plan later in the day, after abruptly calling a halt
to a drive to forge a bipartisan agreement on Thursday night.
President Barack Obama urged action on the bill to stave off
"catastrophe."
STIMULUS ACTION BUILDS CONFIDENCE
The combination of actions by governments to pump up
economies and shore up the financial system has begin to build
some confidence among investors.
The dollar rose and was on track for its best weekly gain
versus the yen <JPY=> since November, according to Reuters
data. The greenback was last at 91.95 yen, up 0.9 percent.
The dollar, however, fell against the euro, down 0.5
percent from late on Thursday, as investors grew comfortable
with global risk, reducing demand for the greenback as a safe
haven.
Investors view the dollar a safe haven amid expectations
the United States, the first major economy to hit recession,
will be the first to emerge from the economic slump because it
was the most pro-active industrialized nation in tackling the
credit crisis.
The FTSEurofirst 300 index of leading European shares
<> closed 1.7 percent higher.
"Expectations for fresh developments with U.S. economic
measures next week, including the establishment of a 'bad
bank', and a weaker yen are encouraging investors to pick up
stocks," said Fumiyuki Nakanishi, manager at SMBC Friend
Securities.
Oil prices, however, slumped on Friday, following news of
U.S. job losses, which heightened the prospect for still weaker
demand for crude in the world's biggest oil consumer.
U.S. light crude for March delivery fell 4.4 percent to
$39.35 a barrel <CLc1>. The global economic slowdown has curbed
demand for fuel around the world, knocking oil prices sharply
lower since they peaked at almost $150 in July.
U.S. government debt prices also slid, as signs of a
rapidly worsening jobs market spurred fears that the government
would have to spend more to aid the economy, and issue more
Treasury debt for the necessary funds.
The price on benchmark 10-year government debt <US10YT=RR>
was last traded down 14/32 at 106-21/32. Its yield, which moves
inversely to its price, was last at 2.95 percent, hovering near
a two-month high. The 10-year yield closed at 2.91 percent on
Thursday.
(Additional reporting by Jeremy Gaunt, David Sheppard in
London and Ellis Mnyandu, Richard Leong in New York; Editing by
Chizu Nomiyama)
