Commodity prices surged Thursday as better-than-expected US employment data and strong corporate earnings boosted interest in risky assets. The Reuters/Jefferies CRB index gained +3.9% to 253.1, the biggest rally in 4 months. Leading the rise was the energy complex in which crude oil price rose +5.7% to 66.94. Gasoline and heating oil jumped +7.3% and +5.8%, respectively to 1.99 and 1.77 respectively. Natural gas price also rose +5.5% to 3.74 as gas storage increased less than anticipated. The black rose continues to climb higher in Asian session today.

Initial jobless claims rose to 584K in the week ended July 25, less than consensus of 588K, from 559K in the price week. With the seasonal factor largely behind us, the data suggested positive improvement in the US employment market if we take a look at continuing claims and 4-week average data. The former declined -54K to 6197K, the third consecutive week of decline while the latter dropped more than -8K last week and represented the 5th consecutive weekly decline.

The stock market also rallied with S&P 500 jumping to 976, the highest level in 9 months, before settling at 987, +1.2%. Strong earnings report from Motorola and MasterCard boosted sentiment. Motorola announced surprising earning of $26M 2Q09, up from $4M in the same period last year. This was driven by the huge cost-cutting including 8000 layoffs so far this year. The management stated that the 'overwhelming majority' of cost cutting has been over.

Earnings results from MasterCard also beat analysts' estimates. In 2Q09, the company booked net profit of $349M,+26.4% excluding special items from the same period last year, as a result of increase in transactions and cost cutting. The management has delivered more upbeat market outlook that the purchase trend has stabilized.

Today in Asia, the MSCI Asia Pacific Index gained +1.3%. Stocks rally across the region. In Japan, Nikkei 225 Stock Average rises +1.37% to 10305 despite the nation's unemployment rate surged to 5.4%, the highest in 6-year, in June.

Gold price edged +0.8% high to 934.9 while silver added +1.7% to 13.49 Thursday as USD weakened. Although it seems that the yellow metal has found buying interest below 930, near-term outlook remains range-bound as there's lack of driving factors for USD to have sharp decline. Moreover, investment demand has been diminished. While bullion holdings in SPDR Gold Trust have plunged around -50 metric tons over the last 4 months, other ETF funds also saw capitals flowing out.