GLOBAL MARKETS-U.S. rate outlook in focus as jobs data loom

* Rally in Europe, gains in Asia cap wild week

* Payrolls data in view, Fed policy in focus

* Dollar firmer, bund futures flat

By Lionel Laurent

LONDON, Oct (HKSE: 3366-OL.HK - news) 2 (Reuters) - Gains for European and Asia stocks capped a wild week for financial markets on Friday, before a key U.S (Other OTC: UBGXF - news) . jobs report that may improve the chances of the Federal Reserve raising interest rates before year-end.

Concern about U.S. monetary policy and slowdown in emerging markets led by China has hit commodities markets and related stocks like Glencore (Xetra: A1JAGV - news) and widened credit spreads this week following a summertime surge in volatility.

Russia's air strikes in Syria, its biggest Middle East intervention in decades, has so far failed to spook global markets beyond a rise in oil prices, however. Global equities are set to end the week flat.

"European equities are trading higher this morning, trying to stage a hesitant rebound after yesterday's bearish market action," said Markus Huber, a trader at Peregrine & Black.

"While a very strong (U.S. data) reading would certainly increase the likelihood of a rate hike this year, very few expect that the Fed will pull the trigger as soon as October."

The pan-European FTSEurofirst 300 was up 1.4 percent. German Bund futures were little changed.

U.S. futures were around 0.3 percent higher before the jobs report. The U.S. dollar index rose before the report as well, which is expected to show the U.S. economy added 203,000 jobs in September, according to a Reuters poll.

Years of cheap central bank cash after the 2007-2008 financial crisis have fuelled asset prices. But recent signs of a slowdown in global economic growth and the Fed's decision last month to put off raising rates have spooked investors betting on a return to more normal policy.

Mixed data on Thursday failed to give more clues, with the pace of growth at U.S. factories slowing in September while new jobless claims pointed to a tightening labour market.

MSCI (NYSE: MSCI - news) 's broadest index of Asia-Pacific shares outside Japan rose 0.4 percent, and was on track for a weekly gain of 1.2 percent after posting its poorest quarterly performance since 2011 with a decline of 17 percent.

Australian shares fell 1.1 percent and Japan's Nikkei Average closed flat. Chinese markets are shut for a week-long holiday. India was also closed on Friday.

Beijing said on Wednesday it would cut the minimum down payment for first-time home buyers in many cities, the second policy measure in two days to fire up Chinese consumption.

"Even (Taiwan OTC: 6436.TWO - news) if this might not have much impact on property prices, it shows the central government has policy intentions to boost GDP growth," said Castor Pang, head of research at Core Pacific-Yamaichi in Hong Kong.

On commodities markets, U.S. crude rose 44 cents to $45.18 per barrel. Brent rose to $47.84. Copper was set to snap a two-week decline as investors bet production cuts would support prices, although concerns about demand from top consumer China remained. (Reporting by Lionel Laurent; Editing by Larry King)