At 10.10am (AEDT) on Monday, the benchmark S&P/ASX200 index was up 52.2 points, or 1.02 per cent, at 5,142.2, while the broader All Ordinaries index was up 52.6 points, or also 1.02 per cent, at 5,203.7.

On the ASX 24, the share price futures index was up 47 points at 5,132, with 11,107 contracts traded.

The Australian market looks set to open higher following gains on Wall Street after US employment data allayed investors’ concerns about a sluggish economy without bolstering fears of an imminent interest rate rise.

Earlier at 8am (AEDT) on Monday, the share price index was up 36 points at 5,121.

US data showed that non-farm payrolls increased by 242,000 jobs in February, but lower wages and hours kept a lid on inflation, a key factor as the Federal Reserve weighs when to next raise interest rates.

Locally, in economic news on Monday, the Australian Bureau of Statistics is set to release January’s overseas arrivals and departure figures.

The ANZ job advertisements series for February is also due out, as is the Australian Industry Group/Housing Industry Association performance of construction index (PCI) for the same month.

Meanwhile, the public hearing in House of Representatives standing committee inquiry into transport connectivity is running.

No major equities news is expected.

The Australian dollar is soaring as positive US jobs figures helped boost risk sentiment.

The local unit was trading at 74.08 US cents, up from 73.17 cents on Friday.

And the Australian share market looks set to open higher following gains on Wall Street after US employment data allayed investors’ concerns about a sluggish economy without bolstering fears of an imminent interest rate rise.

NEW YORK – Wall Street has ended higher after employment data allayed investors’ concerns about a sluggish economy without bolstering fears of an imminent interest rate rise.

The gains followed a report that non-farm payrolls increased by 242,000 jobs in February.

However, lower wages and hours kept a lid on inflation, a key factor as the Federal Reserve weighs when to next raise US interest rates.

“This number shows the economy is strong and the Fed’s got time. It doesn’t have to run off the sidelines and get involved in raising rates,” said John Brady, managing director at RJ O’Brien & Associates in Chicago.

LONDON – Britain’s mining index has climbed to a four-month high boosted by a rally in the prices of major industrial metals.

“Miners are having a great run as some investors believe that stronger metals prices may change the fate of the basic resources sector,” said Securequity senior trader, Jawaid Afsar.

“However, the sector remains vulnerable in the near term as the recent rally may prompt some people to book profits.”

The index also benefited from a surge in US nonfarm payrolls, a sign of labour market strength that could further ease fears the economy might be heading into recession.

HONG KONG – The best week for Asian shares in five months and the second six per cent weekly jump in a row in oil prices has put global markets in a buoyant mood, ahead of closely followed monthly US jobs data.

Investors seem to have put recent worries about a potential global recession firmly behind them for the moment and the US non-farm payrolls numbers are expected to show the labour market in the world’s largest economy ticking along nicely.

“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.”

BEIJING – China’s economy isn’t headed for a hard landing and isn’t dragging on the global economy, China’s top economic planner says.

WASHINGTON – US employment gains have surged in February, the clearest sign yet of labour market strength that could further ease fears the economy is heading into recession and allow the Federal Reserve to gradually raise interest rates this year.

DUBAI – Iran expects economic growth of more than five per cent in 2016 after the lifting of sanctions on the country, state television quoted the central bank governor as saying.

ENERGY

Oil prices have surged, along with other commodities, helping to lift emerging markets shares, which rose 1.6 per cent on the day.

Oil touched two-month highs and gained 10 per cent for the week.

Benchmark Brent crude futures rose 4.45 per cent, or $US1.65, to $38.72. At one point it was up 4.6 per cent at $US38.78.

WTI, or US, crude closed 3.91 per cent, or $US1.35, higher at $35.92. It was up 4.2 per cent at $US36.03 during the session.

PRECIOUS METALS

Gold prices have closed flat following a seesaw session that took prices to a 13-month high twice on technical and underlying investment demand, with a sharp drop in between due to forecast-beating US payrolls data.

“It started out with strong gains overnight, based on continued dollar weakness, but as we got closer to the jobs release, the market cautiously pared back,” said James Steel, chief metals analyst for HSBC Securities in New York.

“That selling was absorbed very readily. Technically we turned out of the bear market last night.”

Prices pared gains after Dallas Federal Reserve Bank President Robert Kaplan said he expects solid growth in the US economy in 2016 and does not expect the economy to fall into recession.

BASE METALS

Copper prices have climbed to their highest in four months after US data showed strong jobs growth combined with low wages, lessening the threat of a early interest rate rise.

Average hourly earnings fell three cents in February even as non-farm payrolls increased by 242,000 jobs in February.

Dampened worries about a Federal Reserve rate rise sent the US dollar index to a two-week low, making metals priced in the US currency cheaper for buyers outside the United States.

That encouraged a scramble by funds to buy copper and triggered pre-set buy orders after copper broke through key levels, a trader said.

“Upside momentum is keeping the buy signal going. It’s nearly all fund buying — both short-covering and fresh longs,” he said.

ASX stocks to watch Monday, March 7

BHP – BHP BILLITON

FMG – FORTESCUE METALS GROUP

RIO – RIO TINTO

The price of iron ore cements its position above the $US50 mark, lifting $US2.25 to $US51.20.

ORG – ORIGIN ENERGY

STO – SANTOS

Earlier, oil prices surged, with WTI crude up 3.91 per cent, or $US1.35, at $US35.92, and Brent crude gaining 4.45 per cent, or $US1.65, to $38.72.At 6.45am (AEDT) on Monday, the share price index was up 36 points at 5,121.

US data showed that non-farm payrolls increased by 242,000 jobs in February, but lower wages and hours kept a lid on inflation, a key factor as the Federal Reserve weighs when to next raise interest rates.

Locally, in economic news on Monday, the Australian Bureau of Statistics is set to release January’s overseas arrivals and departure figures.

The ANZ job advertisements series for February is also due out, as is the Australian Industry Group/Housing Industry Association performance of construction index (PCI) for the same month.

Meanwhile, the public hearing in House of Representatives standing committee inquiry into transport connectivity is running.

No major equities news is expected.

In Australia, the market on Friday finished marginally higher led by the big banks and miners.

The benchmark S&P/ASX200 index was 8.9 points, or 0.18 per cent, higher at 5,090.

The broader All Ordinaries index was up 8.9 points, or 0.17 per cent, at 5,151.1.

The NASDAQ Composite index was UP 9.60 points at 4,717.02.

Benchmark crude oil is UP $US1.35 at $US35.92 per barrel.

The spot price of gold is $US1,259.11, DOWN SLIGHTLY from Friday’s close of $US1,260.77.

AAP