European equities reach their highest since April

European equities broke out of their lull, surging to their highest prices since April after U.S. data signaled the labor market is holding steady.

The Stoxx Europe 600 Index rallied 2 percent, the most since June 29, with the advance gathering pace after the report. U.S. payrolls climbed by 151,000 last month, following an upwardly-revised gain of 275,000 in July. While the August number missed forecasts, the jobless rate remained at 4.9 percent.

The numbers helped ease speculation that the Federal Reserve might increase borrowing costs as soon as this month, sending all western-European markets flying higher in a broad-based rally that lifted shares of all industries. The Stoxx 600 took its weekly gain to 2 percent, the most since July, with the volume of shares trading on Friday 22 percent greater than the 30-day average.

Consumer-related companies and utilities led the gains in Europe on Friday, with Germany’s RWE AG and Dutch Unilever up more than 4 percent. Drugmakers rebounded after falling to their lowest prices since June. Miners climbed with commodities, while energy producers rallied the most in two months. Banks posted the best surge among industry groups this week, gaining 6.1 percent for their best performance since July.

Japanese shares posted the best week in one-anda-half months as a weaker yen boosted exporters ahead of U.S. jobs data that is seen as key to whether the Federal Reserve will raise interest rates as soon as this month.

The Topix index swung between gains and losses Friday before finishing higher to extend the week’s advance to 4.1 percent, the biggest since the five days ended July 15. The yen declined 1.6 percent against the dollar this week. Investors deferred taking risks as they closely track economic data out of the world’s largest economy to better gauge timing on higher borrowing costs.