Asian Stocks End Higher; Nikkei Gains 1%

In Hong Kong, the benchmark Hang Seng gained almost 1% in seesaw trading,while South Korea's Kospi took back its losses to add 1.2%.

In Australia, the main index advanced 0.9%, led by gains over 8% in shares of Rio Tinto and BHP.

Rio Tinto said Friday it was scrapping its $19.5 billion deal with Chinese company Chinalco(ACH Quote), choosing instead to raise $15.2 billion in a share sale and setting up a joint production venture with rival BHP comprising all of their iron ore assets in Western Australia state.

Investors reacted positively, surmising the sale would help Rio pay down its debts as the partnership saves the two companies billions and gives them greater leverage over pricing.

In the U.S. Friday, the payroll report is expected to show the country shed some 520,000 jobs in May, which would mark the second straight month that job losses slowed. The unemployment rate is seen rising from 8.9% in April to 9.2% in May -- possibly the highest since September 1983, when the U.S. was recovering from a severe recession.

In New York Thursday, traders betting on a recovery piled into banks and energy firms, and the Dow Jones Industrial Average rose 74.96, or 0.9%, to 8,750.24. The broader S&P 500 index rose 10.70, or 1.2%, to 942.46.

Wall Street futures pointed to a higher open Friday.

Stocks in London, Frankfurt and Paris were trading higher.

Oil prices climbed toward $70 a barrel, with benchmark crude for July delivery up 39 cents to $69.20 a barrel. On Thursday the contract shot up $2.69.

In currencies, the dollar gained to 96.73 yen from 96.63 yen, and the euro strengthened to $1.4197.