(Bloomberg) -- Asian stocks looked set to follow Wall Street higher after a better-than-expected U.S. jobs report overshadowed ongoing concerns that new coronavirus hotspots could derail the economic recovery.

Futures in Japan and Australia edged higher, while contracts in Hong Kong were flat. The S&P 500 posted a modest gain, while the Nasdaq set another record. Treasuries were little changed, with 10-year yields hovering around 0.67%, and the dollar was steady. Gold is on course for a fourth week of gains, sitting just below $1,800 an ounce.

Investors cheered data showing payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month. Still, Florida reported that infections and hospitalizations jumped the most ever, and Houston had a surge in intensive-care patients.

“There’s still a general positive sentiment about how quickly we’re seeing the recovery,” said Chris Gaffney, president of world markets at TIAA Bank. “But we do think you’re going to see the recovery level off, especially if we continue to see higher case numbers on the virus.”

The U.S. labor market made greater progress than expected last month digging out of a deep hole, yet optimism over the rebound was tempered by stubbornly high layoffs and a resurgent coronavirus outbreak across the country. President Donald Trump still said the report shows the economy is “roaring back.”

Elsewhere, oil closed at its highest level in almost four months before the U.S. holiday weekend. European stocks rallied.

These are some of the main moves in markets:

Stocks

  • The S&P 500 gained 0.5% on Thursday.
  • Futures on Japan’s Nikkei 225 advanced 0.6%.
  • Hang Seng futures earlier ended little changed.
  • Futures on Australia’s S&P/ASX 200 Index rose 0.6%.

Currencies

  • The yen was at 107.53 per dollar.
  • The offshore yuan traded at 7.0683 per dollar.
  • The Bloomberg Dollar Spot Index declined 0.1%.
  • The euro bought $1.1238.

Bonds

  • The yield on 10-year Treasuries declined one basis point to 0.67%.

Commodities

  • West Texas Intermediate crude advanced 1.2% to $40.29 a barrel.
  • Gold was at $1,775.35 an ounce.

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