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The mixed report kept on the table an anticipated interest rate cut in June by the Fed.
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The tech rally looked set to spill over to European markets, with EUROSTOXX 50 futures up 0.8%. Nasdaq 100 futures extended gains to be up 1% while S&P 500 futures rose 0.6%.
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Oil rose 1% to hover above $87 a barrel as crude prices looked set to snap a two-week losing streak, buoyed by expectations of tightening supplies.
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Asian shares inched cautiously higher on Tuesday as investors wagered Australia would become the latest country in the region to inject more policy stimulus into its economy.
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The dollar held pole position in Asia on Friday as bulls wagered a looming US jobs report would add to the chance of rate hikes there, even as the European Central Bank embarks on a trillion euro campaign of bond-buying.
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The Nikkei ended 489.66 points lower at 15,422.40 after hitting as low as 15,383.69, its lowest level since December 18. It was the biggest daily percentage drop since August 7.
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According to M Cary Leahey, the Federal Reserve is likely to pullback monetary stimulus as long as the US jobs data improves.
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Metals gold and silver extended their losses on the second day after it fell by Rs 95 and Rs 170 respectively. Gold was priced at Rs 26,625 per 10 grams whereas silver was priced at Rs 40,430 per kg.
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Spot gold was up 0.8 percent to $1,243.21 an ounce by 0946 GMT, while Comex gold rose about USD 19.10 to USD 1,242.70
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The move in the rupee comes almost a year after the currency last weakened to a record low against the dollar before bouncing back. It had been in a narrow range for much of the year before coming under pressure in early May.
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Indian gold futures are likely to recover from their lowest level in two months, helped by a revival in domestic demand ahead of key festivals and the wedding season, with investors also eyeing the US data for direction in prices.
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Gold surged 4% on Friday, its biggest one-day rise in more than three years, as a surprisingly weak US payrolls report added to fears about a global economic slowdown and fuelled talk of further US monetary easing.
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Gold held near its weakest in a week on Friday as cautious investors and jewellers stayed on the sidelines ahead of the release of a US payrolls report, which could revive hopes of a third round of US Federal Reserve bond buying.
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Asian shares fell on Monday as a sharp slowdown in US jobs growth raised concerns about the strength of the world's largest economy, prompting investors to curb risk exposure ahead of more US data and earnings as well as figures from China this week.
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US payrolls rose far less than expected in March, keeping the door open for further monetary policy support from the Federal Reserve, even as the unemployment rate fell to a three-year low of 8.2%.
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US payrolls likely rose by more than 200,000 for the fourth straight month in March, suggesting the economy is steadily healing.
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The pace of job creation by private employers in the US picked up in February, reinforcing hopes that Friday's broader payrolls report would confirm the labor market recovery has moved into a higher gear.
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Asian stocks dropped on Thursday, with investors spooked by a sell-off on Wall Street overnight and a steady stream of soft data from major economies that has put a damper on risk-taking ahead of Friday's US payrolls report.
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A sharp overnight selloff in commodities petered out on Friday, led by a small pullback in silver, while Asian equities clawed back up from the day's lows as market players squared positions before US payrolls data
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Silver prices rose to their highest since early 1980 in Europe on Monday, tracking gains in gold as weakness in the dollar and higher oil prices supported interest in precious metals.
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Brent crude rose towards USD 118 on Friday, touching its highest in almost four weeks, as investors expect a positive US payrolls report due later in the day to reinforce belief that a job market improvement is under way in the world's top oil importer.
