GLOBAL MARKETS-Dollar, oil extend gains after U.S. job data

* Stocks jump after surprisingly strong U.S. jobs data

* U.S. crude extends rise on jobs data, trade choppy

* Dollar extends gains after U.S. jobs data

* Bond prices fall after rise in Oct U.S. payrolls (Updates with U.S. nonfarm payroll data, adds byline, dateline, previous LONDON)

By Herbert Lash

NEW YORK, Nov 5 (Reuters) - Global stocks rose while the dollar and crude oil extended gains after U.S. employment increased more than expected in October in a fresh sign that the sluggish U.S. economy remains in a moderate recovery.

The U.S. dollar rose against the euro and yen after the U.S. Labor Department said nonfarm payrolls increased 151,000 last month and private companies hired workers at the fastest pace since April. For more details, click [ID:nN04265378]

Analysts had forecast a rise of 60,000 jobs in October, according to a Reuters poll. The unemployment rate remained unchanged from the previous month at 9.6 percent.

"It's a lot stronger than people were anticipating," Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

"So it's still within the realm of a moderate recovery. It's both better than people had been looking for and it's another nail in the coffin of a double dip," Gault said.

The euro fell while U.S. Treasuries and German bunds slid as the surprisingly strong employment data undermined the safe-haven appeal of government debt. [ID:nNYD003722]

The euro traded at $1.4047 , down from the $1.4103 before the report.

The dollar was last at 81.38 yen , compared with 80.91 yen prior to the data.

Benchmark 10-year Treasury notes were trading 23/32 lower in price to yield 2.57 percent. The December Bund future dropped nearly half a point to 129.95.

"Good news is good news. The commodity markets and the stock markets all got everything they wanted this week, which is incredible," said Jeffrey Friedman, senior market strategist at Lind-Waldock in Chicago.

European shares rose from about break-even on news of the U.S. employment data and U.S. stock index futures turned positive. [ID:nLDE6A4154] [ID:nN05286986]

The FTSEurofirst 300 <.FTEU3> index of leading European shares advanced 0.5 percent to 1,112.11 by 1235 GMT.

S&P 500 futures rose 2.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

December crude rose 26 cents, or 0.3 percent, to $86.75 a barrel by 8:40 a.m. EDT (1240 GMT), having traded from $86.21 to $87.22. (Reporting by Leah Schnurr, Rodrigo Campos, Nick Olivari, Robert Gibbons and Chris Reese in New York, Dominic Lau in London; Writing by Herbert Lash, Editing by Chizu Nomiyama)