World stock markets cheered by healthy economy as dollar hits two-month high

World stock markets rallied on Monday and the US dollar hit a two-month high against the yen as the latest US jobs data gave investors greater confidence in the strength of the economy, Reuters reports.

Focus was already turning to Federal Reserve chief Janet Yellen's semi-annual testimony on monetary policy and a meeting of Canada's central bank on Wednesday for the latest policy signals from the world's major central banks. For now, unease about an end to an era of ultra-cheap money gave way to optimism about the global growth outlook, with Friday's stronger-than-expected U.S. non-farm payrolls report helping to bolster risk appetite. Data on Monday showed exports from Germany, Europe's biggest economy, rose more strongly than expected in May.

European stock markets followed Asia higher, with blue-chip stock markets in London, Paris and Frankfurt up 0.2 to 0.5 percent in early Monday trade.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.4 percent while Japan's Nikkei rose 0.8 percent to a one-week high helped by weakness in the Japanese currency.

US stock futures also firmed, suggesting Wall Street shares could extend gains made after the US jobs data.

"Unlike in recent years, where there was very patchy growth across the world, we are seeing a synchronized upswing in the global economy," said Alex Dryden, global market strategist at JP Morgan Asset Management.

"So while it may not be coordinated communication, I do think there's been a change in rhetoric from central banks across the world -- though the ECB is the central bank to watch in the second half of the year."

Over the past two weeks, markets have reassessed the outlook for tighter monetary policies from major central banks following a string of hawkish remarks.

"We'll see just how much substance there is to these comments on Wednesday, when the Bank of Canada announces its latest decision, with investors now expecting a 25 basis point increase," said Craig Erlam, senior market analyst at OANDA.

A rate rise from Canada's central would be its first interest rate rise in nearly seven years.