* Nonfarm payrolls increase by 313,000 in February
* Average hourly earnings rise 0.1 percent
* Indexes higher: Dow 0.52 pct, S&P 0.52 pct, Nasdaq 0.56pct
By Ankur Banerjee and Parikshit Mishra
March 9 (Reuters) -
Nonfarm payrolls jumped by 313,000 jobs last month, theLabor Department said, its biggest increase in more than 1-1/2years.
Average hourly earnings edged up
"The great news is the labor participation rate went up, theheadline numbers are great, and the average hourly earnings hassettled back down into consensus," said Art Hogan, chief marketstrategist at Wunderlich Securities in
"It's a great report across the board and I think that movesmarkets higher."
Strong jobs data last month fueled speculation that higherwages could lead to faster interest rate increases by theFederal Reserve and make borrowing expensive, rattling globalequities market.
However, the slow wage growth in February could temperexpectations that the Fed will change its rate forecast to fourhikes this year from three.
The bull market for stocks turned nine years old on Fridayand, despite being long in the tooth, appears poised to set therecord as the longest in history, buoyed by global economicgrowth and stronger company earnings.
At 9:46 a.m. ET, the Dow Jones industrial average wasup 130.37 points, or 0.52 percent, the S&P 500 was up14.29 points, or 0.521729 percent.
The Nasdaq Composite was up 41.94 points, or 0.56percent, at 7,469.89.
Signs of a potential breakthrough in nuclear tensions in theKorean peninsula also lifted sentiment, with world marketshitting one-week highs on Friday.
Worries that the tariffs on steel and aluminum could ignitea global trade war had roiled markets since last Thursday, withthe exit of chief economic adviser Gary Cohn intensifying theconcerns.
Among bigger movers, discount retailer Big Lots slid9 percent after posting a surprise drop in same-store sales andforecasting a weak profit for the current quarter and the fullyear.
Shares of toymakers Hasbro and Mattel werelower after sources told Reuters that retailer Toys 'R' Us ispreparing for a potential liquidation.
Tesla fell 1.2 percent, following the exit of ChiefAccounting Officer Eric Branderiz and a Morgan Stanley note onrising competition.(Reporting by Ankur Banerjee and Parikshit Mishra in Bengaluru;Editing by Sriraj Kalluvila)