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US sharemarkets rose strongly in late trade on Friday with bargain hunters active in technology and materials sectors. Intel rose 2.4percent with Alcoa up 2.1percent. At the close, the US Dow Jones index was higher by 10 points or 0.1percent with the S&P 500 up 0.3percent and the Nasdaq was up 15pts or 0.7percent. Over the week the Dow Jones lost 0.6percent with the S&P 500 down by 0.7percent and the Nasdaq lost 0.3percent.

US non-farm payrolls (employment) fell by 20,000 in January following a revised drop of 150,000 in December (originally reported as 85,000 decline). Economists had tipped a 5,000 lift in jobs. But the jobless rate fell from 10percent to 9.7percent. Hours worked rose from 33.2 to 33.3 hours, hourly earnings rose 0.3percent and manufacturing employment rose for the first time since November 2007.

US treasuries rose on Friday (yields lower) as investors continued to fret about the fiscal positions of small European nations. Investors also pared expectations of higher interest rates by the Federal Reserve in response to the slightly weaker job data. US 2yr yields fell by 4pts to 0.77percent with US 10yr yields down 4pts to 3.57percent. Over the week US 2yr yields fell by 4pts with US 10yr yields down 1pt.

The Euro and commodity currencies eased against the greenback in European trade before regaining ground in the US session to finish little changed on Friday´s Asian close. The Euro fell from highs near US$1.3745 to near US$1.3585, ending US trade near US$1.3675. The Aussie dollar fell from highs near US87.15c to US85.80c, ending US trade near US86.80c. And the Japanese yen lifted from 89.85 yen per US dollar to JPY88.85, ending US trade near JPY89.20.

Group of Seven finance ministers did not issue a communiqué after their weekend meeting. European ministers gave assurances that Greece will still to its austerity plan.

European shares hit 3-month lows on Friday with concerns about debt levels of smaller European nations dominating attention. The FTSEurofirst index fell by 1.9percent with the UK FTSE down by 1.5percent and the German Dax down 1.8percent.

Asian stock markets tumbled on Friday as heavy losses on Wall Street and heightened concerns over European sovereign debt prompted a sell-off across sectors. Several regional indexes finished the week at their lowest levels this year.

Japan's Nikkei fell 2.9%--its biggest percentage drop in more than two months--closing barely above the psychologically key 10,000-point level, at 10,057.09. South Korea's Kospi lost 3.1%, Taiwan's Taiex sank 4.3% and China's Shanghai Composite fell 1.9%. Hong Kong's Hang Seng Index tumbled 3.3% to 19,665.08--its first finish below the 20,000-point level since September.

Gold fell by US$10.20 an ounce on Friday to US$1,052.80.

Base metal prices eased again on the London Metal Exchange on Friday as investors trimmed positions in commodity markets. Zinc fell 4.2percent with other metals down between 1.5-3.8percent. Over the week all base metals fell sharply lead by zinc, down 8.2percent, and nickel, down 7.9percent. Other metals lost 4.3-6.9percent.

US crude oil prices eased by 2.7percent on Friday as investors continued to lose confidence about global economic prospects. The Nymex crude oil contract fell by US$1.95 to US$71.19. Over the week oil prices fell by 1.4percent.

In local news, Rio Tinto Group slumped 5 percent to $66.60 in Sydney. Rio may reinstate its dividend after halving its debt the Sunday Telegraph reported.

Fairfax Media Ltd. may name at least two new non-executives directors as part of a board renewal process, the Australian Financial Review reported. The shares lost 1.4 percent to $1.725.

JB Hi-Fi Ltd. reported first-half net income of $76 million. The company also said Richard Uechtritz plans to retire as chief executive officer in July or August and will be succeeded by Chief Operating Officer Terry Smart. The shares dipped 0.9 percent to $20.10.

National Australia Bank Ltd. and French insurer Axa SA were scheduled to begin talks over the weekend on a possible agreement to acquire and split up Axa Asia Pacific Holdings Ltd., the Sydney Morning Herald reported. The stock fell 2.2 percent to $25.31.

Roc Oil Co. Orbis Investment Management, the company’s largest shareholder, increased its stake in the energy explorer to 11 percent from 8.2 percent after a cut in projected reserves sparked the biggest decline in Roc shares since trading began in 1999, a filing to Australia’s stock exchange showed. The shares fell 3.6 percent to 40 Australian cents.

Wotif.com Ltd., Chief Executive Officer Robbie Cooke said the accommodation Web site plans to expand in India, the Australian Financial Review reported. There is plenty of room for growth in India, where the company offers about 150 properties, the newspaper reported, citing Cooke. The shares advanced 0.2 percent to $6.53.

In Australia, JB Hi-Fi releases first half results. In the US, no major economic data is scheduled.

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