* Strong jobs growth sends dollar up vs yen
* U.S. stocks set to open sharply higher
* Euro trims gains vs greenback to $1.3059
By Richard Hubbard
LONDON, May 3 (Reuters) - The dollar rose over 1 percent
against the yen and U.S. stock index futures pointed to a sharp
rise on Wall Street on Friday after data showed the American
economy was adding jobs at a faster rate than expected.
The April nonfarm payrolls report showed employers had hired
165,000 more people, up from a revised 138,000 in March and
compared with expectations for only an additional 145,000 new
jobs last month.
U.S. stock index futures jumped after the numbers came out,
indicating that the widely watched S&P 500 index was
likely to break the key 1,600 point level.
"The idea that the employment is holding as well as it is in
the face of the fiscal headwinds the economy is currently
enduring is a very positive sign of the economy's underlying
fundamental improvements," said Russell Price, a senior
economist at Ameriprise Financial Services.
The dollar rose as high as 99.18 yen, compared with
97.95 yen before the data. It was last at 99.14 yen, up 1.3
percent on the day.
The euro was 0.1 percent lower on the day at $1.3059,
compared with $1.3118 before the release of the data.
The jobs figures cap a big week for financial markets that
has seen the U.S. Federal Reserve recommit to its aggressive
monetary policy easing and the ECB cut rates to record lows and
signal further policy easing may lie ahead.
The moves come just a month after the Bank of Japan promised
to inject about $1.4 trillion into its economy to spur growth
and end decades of deflation.
By increasing liquidity, three of the world's major central
banks have fuelled a rally in share and bond markets that has
driven many benchmark indexes back up to levels last seen before
the financial crisis began.
Europe's broad FTSEurofirst 300 index of leading
shares rose 0.5 percent after the jobs data to highs last seen
in mid-2008. The index has gained 5.1 percent since the middle
of April, despite a disappointing earnings season.