* 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.
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. 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.
Oil prices dipped after OPEC+ agreed last week to gradually ease some of its production cuts between May and July. crude futures CLc1 fell 0.5% to $61.16 per barrel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD
http://tmsnrt.rs/2egbfVh Global asset performance
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.