GLOBAL MARKETS-Global stocks, dollar gain on U.S. jobs data

* Better than expected U.S. jobs data boost risk assets

* Dollar firms vs major currencies, Treasuries slip

* Jobs data adds to view U.S. economy is gaining strength (Adds opening of U.S. markets, byline, dateline; previously LONDON)

By Herbert Lash

NEW YORK, April 1 (Reuters) - Global stocks rose and the U.S. dollar extended gains on Friday after an upbeat U.S. employment report signaled the recovery in the world's largest economy remained firmly on track.

U.S. stock index futures pointed to a higher open after the report, while European equities <.FTEU3> extended early gains, rising 1.1 percent.

The improving jobs picture was a short-term positive for a stronger dollar. The greenback added to early session gains and was up 0.7 percent against a basket of major currencies <.DXY> and up 0.5 percent versus the euro .

A total of 216,000 nonfarm U.S. jobs were added in March, the government said, well above the 190,000 expected in a Reuters poll.

January and February employment figures were revised to show 7,000 more jobs than previously reported, and the unemployment rate fell to a two-year low of 8.8 percent. For details, see [ID:nNOAT00477]

The data is "very consistent with the view that the recovery is gaining some momentum," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York. "It's hard to argue with the case that we have further to go in this bull market economic recovery cycle."

Crude oil prices extended slight gains on the stronger jobs picture. On the New York Mercantile Exchange, May crude rose 50 cents to $107.22 a barrel

"The numbers are obviously good, and one can hope that we will continue to see the market rise in continuing months," said Bernard Baumohl, chief global economist at the Economic Outlook Group in Princeton, New Jersey.

Baumohl cautioned that rising energy prices could threaten the employment outlook by putting a squeeze on household spending and business investment.

"One has to wonder whether we'll see the pace of hiring slow as a result," Baumohl said.

U.S. Treasuries extended losses after the data, as investors' hunt for risk picked up pace, while safe-haven gold also fell to a session low.

"Bonds weakened on the news because the payrolls number was a little bit stronger than expected," said Chris Rupkey, chief financial economist at Bank of Tokyo/Mitsubishi UFJ.

"If the economy has lifted off and the labor market continues to produce jobs, that can only mean one thing ... we're getting closer to the day when the Fed starts to normalize interest rates," Rupkey said, referring to the U.S. central bank.

"And if the Fed is going to do that, that means 10-year yields under 3.5 percent don't have a lot of value." (To read Reuters Global Investing Blog click on http://blogs.reuters.com/globalinvesting; for the MacroScope Blog click on http://blogs.reuters.com/macroscope; for Hedge Fund Blog click on http://blogs.reuters.com/hedgehub) (Writing by Herbert Lash; editing by Jeffrey Benkoe)