(Adds gold, oil settlement prices, comment) * Treasury yields climb after U.S. labor market report * Fed seen still on track to begin tapering * Oil prices climb again but are off recent highs * Graphic: Global asset performance tmsnrt.rs/2yaDPgn * Graphic: World FX rates tmsnrt.rs/2egbfVh NEW YORK/LONDON, Oct 8 (Reuters) - Global equity markets edged higher and Treasury yields rose on Friday after a weak U.S. labor market report likely kept the Federal Reserve on track to begin tapering its massive bond purchases in November. Yields on the benchmark 10-year U.S. Treasury note climbed above 1.6% for the first time since June, the dollar eased and stocks on Wall Street moved sideways with an upward bent. The U.S. economy created the fewest jobs in nine months in September amid a drop in hiring at schools and worker shortages, a decline some attributed to mask requirements imposed during the surge of the Delta variant in the summer. “The headline weakness hides an otherwise much stronger job market than we’re currently seeing,” said Russell Price, chief economist at Ameriprise Financial Services Inc in Troy, Michigan. “It’s related to mandates for vaccinations for the people who may have lost their jobs because of that.” MSCI’s all-country world index rose 0.14% while the broad STOXX Europe 600 index closed down 0.28%. But European stocks still marked their best week in two months as fears of soaring inflation were tempered. Gains in oil and auto stocks were outweighed by a 1.4% decline in tech stocks as rising bond yields dimmed the high-growth sector’s appeal, a story that also played out on Wall Street. The Dow Jones Industrial Average rose 0.25%, the S&P 500 added 0.14% and the Nasdaq Composite slid 0.13%, pulled lower after Wells Fargo cut its price target on Comcast Corp, which tumbled 4.0%. The September jobs report, which showed the unemployment rate falling to 4.8%, is the last one before Fed policymakers meet Nov. 2-3, when the market expects tapering to begin. The Fed has made it clear that it does not need a blockbuster jobs report to taper in November, said Kathy Lien, a managing director at BK Asset Management in New York. “While you’re seeing a little bit of a pullback in the dollar, I think the Fed remains on track,” she said. The dollar index, which tracks the greenback versus a basket of six currencies, fell 0.158% to 94.023. The euro was up 0.22% at $1.1575, while the Japanese yen traded up 0.36% at $111.9900. The sideway market is due to an information vacuum before third-quarter earnings season starts next week, said Thomas Hayes, chairman and managing member of Great Hill Capital LLC. “The last few weeks there’s some uncertainty with Delta, so the market is really looking forward to estimates,” Hayes said. A rally on Thursday had lifted Global stock indexes turned positive for the week after Thurday’s rally despite widespread selling initially as soaring energy prices and the prospect of sooner-than-expected interest rate hikes to combat inflation rattled investors. The U.S. Senate’s approval of legislation to raise the federal government’s debt limit and avoid a historic default buoyed risk sentiment, though it only put off a decision on a longer-term remedy until early December. In Asia, the main share benchmark was supported by advances in Chinese blue chips, which rose 1.31% as trading resumed after the week-long National Day holiday. Sentiment improved from a private-sector survey that showed China’s services sector returned to growth in September. Chinese shares have been battered the past three months by regulatory clamp-downs, turmoil in the property sector related to China Evergrande’s vast debt and recent power shortages. But some investors are starting to see a buying opportunity. Oil prices rose, gaining more than 4% on the week, as a global energy crunch lifted prices to their highest since 2014 as big global power users struggle to meet demand. Oil prices rose on Friday to trade up 4% on the week as global energy crunch has boosted prices to their highest since 2014. Brent crude rose 0.54% to settle at $82.39 a barrel. U.S. crude settled up 1.34% at $79.35 a barrel. U.S. gold futures settled down 0.1% at $1,757.40 an ounce. Reporting by Herbert Lash; additional reporting by Sujata Rao and John McCrank; Editing by Chizu Nomiyama, Kevin Liffey, Dan Grebler and Cynthia Osterman Our Standards: The Thomson Reuters Trust Principles.