By Dow Jones Newswires Staff

Global stocks rose and the dollar weakened as a risk-on turn prompted by Thursday's cool jobs data continued to ripple through markets.

The U.S. economy added fewer jobs than investors had anticipated in June, prompting a strengthening in U.S. Treasurys and a weaker greenback as markets scaled back expectations for Federal Reserve rate hikes this year.

Following the data, Asian tech stocks rallied after enduring heavy selling in previous sessions. European stocks added to a clutch of record highs in the last session, as investors rotated out of under-fire chip stocks and toward more defensive sectors on the continent. The Europe-wide Stoxx 600 is now outperforming the S&P 500 so far this year.

In Japan, the yen rose to a two-week high against the dollar after Japan's finance minister delivered a fresh warning about potential interventions to support the currency.

For the day ahead, central bank chiefs Christine Lagarde and Andrew Bailey are set to speak at an economic forum in Aix-en-Provence, France. U.S. markets are closed for Independence Day holiday.

  • Oil prices were broadly stable as markets move toward a short-term supply glut. Brent crude rose 0.3% to $72.02 a barrel, while WTI contracts for August delivery were flat at $68.73 a barrel. Oil prompt spreads are in contango--where oil futures are more expensive than spot prices--signaling ample near-term supply, MUFG's Soojin Kim wrote. "The recovery in Gulf exports, together with rising oil volumes of Iranian oil held offshore, continues to add to short-term supply." Risks to supply remain however, as key issues between the U.S. and Iran remain unresolved, including the future governance of the Strait of Hormuz, the analyst said.
  • U.S. markets are closed for the Independence Day holiday.
  • Stocks in Asia were up as Japan's Nikkei 225 index climbed 1.5%, and Hong Kong's Hang Seng gained 1.3%. China's benchmark Shanghai Composite gained 0.4%. South Korea's Kospi rallied 5.8% after memory chip makers Samsung Electronics and SK Hynix--which dominate the index--rose 8% and 11%, respectively. The index is down 14% over the last five trading days, though remains up over 90% so far this year.
  • Blue-chip European indexes all rose in opening trade as tech stocks rallied and industrials gained. The Europe-wide Stoxx 600 rose 0.5%, extending a record close in the last session. Recovering metals miners helped London's FTSE 100 add 0.4%. The French CAC 40 was up 0.4%, helped by a 1% gain for energy technology group Schneider Electric. Germany's industrial-heavy DAX jumped 0.8%, extending its own record. Heidelberg Materials gained 2.4%, while autos in the index continued a cautious rebound. The Dutch AEX rose 0.4%, boosted by a 1.6% gain for ASML. Spain's IBEX 35 and the Italian FTSE MIB gained 0.45% and 0.6%, respectively.
  • The dollar remained under pressure after weaker-than-expected U.S. nonfarm payrolls data damped expectations of a rise in interest rates. Data Thursday showed American employers added 57,000 new jobs in June, well below the 115,000 forecast by economists in a WSJ survey, while prints for May and April were revised lower. "The payroll data support our view that the Federal Reserve will not hike rates this year," Jefferies economist Mohit Kumar wrote in a note. The U.S. economy remains resilient but the jobs data argue against rate rises, he said. The DXY dollar index fell 0.1% to 100.686 after reaching a two-week low of 100.558 Thursday. Friday is a U.S. public holiday, meaning fewer traders and reduced liquidity.
  • Eurozone government bond yields rose in early trade and the trend could continue throughout the day, Commerzbank's Hauke Siemssen said in a note. "Without a circuit breaker in sight and the U.S. out on holiday, the bearish dynamics could continue ahead of the weekend," he said. "Long-end EGBs remain under pressure with the curve steepening from both sides." The rates strategist pointed to the bearish dynamics with long-end Japanese government bonds under renewed pressure this week. Eurozone 10-year government bond yields rose by between 1.6 basis points and 2.6 basis points, with the 10-year German Bund yield up 2.1 basis points at 2.919%.
  • Bitcoin was up 0.2% at $61,662 after reaching as high as $62,128 on Thursday.
  • Gold is poised to end a volatile week on the front foot. New York gold added 1.5% to trade at $4,188.10 a troy ounce in early European trade. The dollar and U.S. Treasury yields fell following Thursday's nonfarm payrolls data, in turn increasing the appeal of nonyielding gold. Gold is also supported by central banks returning to the market as buyers in May, ING analysts Warren Patterson and Ewa Manthey wrote.

Write to Barcelona Editors at barcelonaeditors@dowjones.com