LONDON, 4 October 2003 — The euro fell back sharply against the US dollar here yesterday as the greenback gained strength from a better than expected report on the US labor market.

The yen, had approached the psychologically significant level of 110 to the dollar, likewise weakened late in the day.

The euro in late-day deals was at 1.1593 dollars, against 1.1691 in New York yesterday. The dollar was trading at 110.88 yen after 110.65 yesterday. Analysts said it was still too early to say if the dollar’s recent slide has been reversed. “The jobs numbers helped the dollar reach 1.1588 against the euro but subsequently that gain was erased,” said MMS International analyst Gary Noone.

The euro was changing hands at 1.1593 dollars from 1.1691 late on Thursday in New York, 128.66 yen (129.36), 0.6974 pounds (0.7000) and 1.5471 Swiss francs (1.5402).

The dollar was being quoted at 110.88 yen (110.65) and 1.3335 Swiss francs (1.3169).

Meanwhile, European stock markets took flight yesterday on a stronger than expected jobs report in the United States, with the London FTSE gaining 1.54 percent to 4,274. In Paris the CAC 40 rose 3.24 percent to finish at 3,296.36, while in Frankfurt the DAX was up 3.73 percent at 3,398.77 in mid-afternoon trade.

In New York, stocks streaked higher yesterday. The technology-laced NASDAQ Composite Index jumped 52 points, or 2.84 percent, to 1,888. The broad Standard & Poor’s 500 Index climbed 18 points, or 1.74 percent, to 1,038. The blue-chip Dow Jones Industrial Average rallied 166 points, or 1.76 percent, to 9,655.

For the week, the NASDAQ has leaped about 5.2 percent, the S&P 500 is up 4 percent and the Dow has jumped about 3.7 percent.

Asian share prices closed higher yesterday. The Tokyo Stock Exchange’s Nikkei-225 index gained 115.76 points to close at 10,709.29. In Taipei, the weighted index closed up 47.93 points at 5,747.79. In Hong Kong, the key Hang Seng index gained 62.60 points to close at 11,608.72. In Sydney, the All Ordinaries index was up 2.3 points at 3,205.7.

In Singapore, the STI closed up 26.29 points at 1,670.30 and the broader All Singapore Equities was up 7.17 points at 456.06. The KLSE composite index closed up 2.77 points at 740.20. The Stock Exchange of Thailand (SET) composite index fell 8.68 points to close at 558.34. The Philippine Stock Exchange composite index gained 6.84 points to 1,303.73. The Bombay Stock Exchange’s 30-share index rose 97.84 points to close at 4,552.92.