Figures earlier this week have shored up hopes that the nonfarm payrolls data for March will come in strong. The consensus in the markets is that payrolls rose by 190 000 during March but that the unemployment rate, which is based on a separate survey, was unchanged at 8.9%.
And with the "whisper" numbers in the markets indicating that payrolls will rise by even more than expected, stocks are buoyant on the first trading day of the new quarter. When the US generates more jobs, that typically boosts spending on products from around the world, helping global growth.
"The big driver at the moment appears to be resurgent hopes that the US economy is looking upbeat," said Yusuf Heusen, a senior sales trader at IG Index.
In Europe, the FTSE 100 index of leading British shares was up 0.8% at 5 955 while Germany's DAX rose 0.9% to 7 109. The CAC-40 in France was 0.6% higher at 4 103.
Wall Street was poised for a solid opening, though how it actually opens will likely hinge on the figures, which are released an hour before the bell - Dow futures were up 42 points at 12 294 while the broader Standard & Poor's 500 futures rose 4 points to 1 325.
The payrolls figures often set the stock market tone for a week or two after their release. They will be watched particularly closely this month as investors gauge when the Fed will begin tightening monetary policy. Recent comments from Fed officials have indicated that interest rates may rise sooner than the markets had previously been anticipating.
The figures could have a big impact in the currency markets, which trade more closely on interest rate expectations than stocks. Recently, the euro has been gaining ground against the dollar on widespread predictions that the European Central Bank will raise borrowing costs at its monthly policy meeting next Thursday.
By early afternoon London time, the euro was 0.1% lower at $1.4148 while the dollar rose 0.4% to 83.68 yen.
The euro has remained fairly stable despite the Irish government's latest attempt to draw a line under its massive banking sector losses. Though Thursday's stress test results showed that the sector needed an additional €24bn ($34bn) in cash, there are hopes that an announced overhaul of the banks will help the financial sector recover.
The response in stock markets to the stress test results was mixed. Shares of the two banks that are due to survive the overhaul rose Friday, while the shares of Ireland's only other publicly listed bank, Irish Life & Permanent, plunged to a record low. The latter will be broken up, with its profitable pensions and investment units facing sale in a public flotation.
Earlier in Asia, most markets advanced though Tokyo's stocks continued to be buffeted by the repercussions of the March 11 earthquake and tsunami. The Nikkei closed 0.5% lower at 9 708.39.
Elsewhere, Hong Kong's Hang Seng jumped 1.2% to 23 801.90 and South Korea's Kospi added 0.7% to 2 121.01.
China's Shanghai Composite Index gained 1.3% to 2 967.41 after a state-affiliated agency reported the country's manufacturing regained momentum in March, easing fears of a sharp slowdown. China's purchasing managers index, or PMI, rose to 53.4 last month, ending a three-month decline.
In the oil markets, the focus remained very much on Libya amid signs that forces loyal to Moammar Gadhafi are gaining ground. Their capture of another major eastern city has nearly reversed the gains rebels made since international airstrikes began over a week ago. The uncertainty has kept oil prices elevated - Libya accounts for a little under 2% of global oil production.
Benchmark crude for May delivery was up 28 cents at $107 a barrel in electronic trading on the New York Mercantile Exchange after settling at a 30-month high of $106.72 the day before.