STOXX up 0.18, dollar elevated
Oil prices trim gains after Saudi39;s big cuts to output
Markets wager Fed to pause in June, see risk of July hike

SYDNEYLONDON, June 5 Reuters Shares rose and the dollar firmed on Monday as investors bet the Federal Reserve would pause its rate hikes this month after a mostly encouraging U.S. jobs report, while oil prices jumped after Saudi Arabia pledged big output cuts.

The benchmark European STOXX index climbed 0.18 in early trading, led by gains in the oil gas sector index and echoing a 0.2 gain in MSCI39;s broadest index of AsiaPacific shares outside Japan.

Japan39;s Nikkei surged 2.1 to stand above 32,000 for the first time since July 1990.

The dollar also firmed against major peers after data on Friday showed payrolls in the public and private sector far outstripping forecasts, while wage pressures eased and the unemployment rate climbed off a 53year low.

That in turn stoked hopes the Fed could pause its program of rate hikes at the June 1314 meeting, albeit likely resuming in July.

On Monday, oil prices, which have recently come under pressure amid heightened concerns about China39;s slowing economy, rose after Saudi Arabia announced it would cut its output to 9 million barrels per day in July, from around 10 million bpd in May, the biggest reduction in years.

Brent oil rose 2 to 77.81 a barrel by 0815 GMT, giving up some of its earlier gains to as high as 78.73, while U.S. crude climbed 2.36 to 73.4 a barrel, after…