Markets should get a big boost this morning from positive jobs reports released in Canada and the U.S.

In the U.S., payrolls grew in January at the fastest pace in three years. Non-farm businesses added 112,000 jobs to their payrolls in January. It was the largest gain since December 2000, and well above the revised 16,000-job gain for December 2003r. That number had initially been estimated at a paltry 1,000 jobs.

The U.S. unemployment rate fell a tenth of a percentage point to 5.6%, the lowest rate since President George W. Bush was inaugurated in January 2001.

Statistics Canada is reporting more moderate but still positive job news. Following strong gains in the last four months of 2003, employment increased 15,000 in January. An increase of 47,000 full-time jobs was offset by a decline in part-time work. The unemployment rate was unchanged at 7.4%.

Market analysts are now suspecting that that the Bank of Canada will cut interest rates at its next meeting in March to give an extra boost to the economy, offsetting the impact of the strengthening Canadian dollar.

Companies expected to report results today include Dofasco Inc., Fairfax Financial Holdings Ltd. and Quebecor World Inc.

In Asia markets finished mixed as the Nikkei Stock Average lost 3.68 points, or 0.04%, to 10,460.92, but Hong Kong shares ended sharply higher. The Hang Seng Index rose 278.66 points, or 2.1%, to 13,309.60.

On Thursday, the Toronto S&P/TSX composite index finished 10.29 points higher at 8,548.41. Thursday, the Dow Jones industrial average closed up 0.24 percent to close at 10,495.55, while the Nasdaq composite index closed 0.27 percent higher at 2,019.56 points.