GLOBAL MARKETS-Asian shares climb from 4-wk low, dollar up after US jobs surprise

Reuters

* U.S. adds 204,000 jobs in Oct, sharply above forecast

* Dollar gains against euro and yen

* China's Oct factory output, CPI rise

* Tokyo's Nikkei set to open higher

By Dominic Lau

TOKYO, Nov 11 (Reuters) - Asian shares edged away from afour-week low on Monday, and the dollar rose against the euroand yen as a surprise surge in U.S. jobs growth signalled theworld's largest economy was on a firmer footing.

U.S. employers added more than 200,000 new jobs to theirpayrolls last month, almost twice the amount forecast byanalysts and defying expectations that a partial U.S. governmentshutdown would hamper job growth.

The strong data raised the prospect the Federal Reserve maysoon decide to start winding down its $85 billion-a-monthbond-buying programme to prop up the economy.

But Fed Chairman Ben Bernanke and two other top policymakerssuggested continued support for the U.S. central bank's massivestimulus campaign.

Adding to the positive sentiment, China's factory output andinvestment data pointed to signs of stabilisation in theeconomy, though annual inflation climbed to an eight-month highin October, fuelling market worries about policy tightening.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 percent after shedding 1 percent onFriday to a four-week low.

Australian shares firmed after the strong Chinese databecause of the two country's heavy trade links. The S&P/ASX 200index gained 0.3 percent, while the Australian dollar stabilised at $0.9378, having fallen 0.8 percent in theprevious session.

The dollar was up 0.2 percent at 99.20 yen, near aseven-week high of 99.41 yen reached last Thursday, and up 0.1percent at $1.3352, having gained 0.4 percent on Friday.

Against a basket of major currencies, the dollar stood at 81.323, not far from a two-month high of 81.482 touchedon Friday.

"The full suite of new data and information balances therisk more evenly for our call for Fed tapering to begin inMarch. Previously it seemed March was the earliest the Fed wouldtaper owing the weaker hiring trends," analysts at BNP Paribaswrote in a note.

"However, neither GDP nor employment has slowed as much aswe previously estimated or feared. Yet Fed speakers haveemphasised the need to see an acceleration in hiring, GDP growthand inflation before it begins to taper its bond-buyingprogramme."

As the yen weakened, Japan's Nikkei futures climbed 1.2percent, indicating a stronger open for the Nikkei benchmark after losing 0.8 percent last week.

U.S. S&P E-mini futures held steady after theStandard & Poor's 500 index climbed 1.3 percent onFriday.

U.S. Treasury futures were also stable after the10-year U.S. Treasury yield rose as much as 15 basispoints to a four-week high of 2.763 percent on Friday.

Among commodities, gold was steady at about $1,288 anounce, having fallen 1.5 percent to a three-week low on Friday.

U.S. crude prices inched up 0.1 percent to around$94.7 a barrel, adding to Friday's 0.4 percent rise.

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