Average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls rose by 7 cents, or 0.4 percent, in December to $17.71, seasonally adjusted. This followed a 7-cent gain in November. Average weekly earnings also grew by 0.4 percent in December to $598.60. Over the year, average hourly earnings rose by 3.7 percent, and weekly earnings rose by 3.4 percent.

9:30AM New York, 8:00PM Mumbai - Sensex closed the week higher, inflation index edged higher.

India markets closed higher on Friday with the Bombay Stock Market benchmark index advancing 1.7% or 342 at 20,687. In the broader markets, Nifty held up in green by 1.6%. The 50-share index closed at 6,274.

Among advancers from the Sensex index were Larsen & Toubro, Hindalco Industries, ICICI Bank, Reliance Industries, ONGC and Reliance Communication with a rise of 2.9% more.

Of the National Stock Excahnge-50 stocks, Reliance Petroleum, Sterlite Industries, HDFC, Siemens India and Cairn India were some of the key gainers. The shares advanced over 2.5% each.

Among key draggers in the broader index were NTPC, Nalco, Sun Pharma, BPCL and Hero Honda Motors. The stocks slid 1.5% or more.

Buying was visible in metal stocks. Sterlite Industries, Hindustan Zinc, Shree Pre-coated Steels, Maharashtra Seamless and Jindal Steel & Power surged 1.6% or more.

Banking stocks also gained. On Friday Finance Minister P Chidambaram said PSU banks should slash deposit and lending rates by half a percent to spur investment and consumption so that the economy can sustain its current growth momentum.

Kotak Mahindra Bank, Axis Bank, Union Bank of India, Andhra Bank and Centurion Bank of Punjab rose 0.7% or more.

Of the BSE stocks, 1470 shares declined, 1437 advanced, and 17 remained unchanged. Among the Sensex shares, 16 slid and the rest remained unchanged.

Turnover on the BSE stood at 10,960 crore rupees. Reliance group stocks dominated turnover charts on BSE. Reliance Petroleum recorded the highest turnover of 430.87 crore rupees followed by Reliance Natural Resources at 397.94 crore rupees, Reliance Industries at 271.34 crore rupees. Turnover on the NSE stood at 23,686 crore rupees.

Elsewhere in Asia, markets closed mixed with Hong Kong''s Hang Seng surging 2.4% while South Korea''s Kospi also gained ground. Japan''s Nikkei plunged 4.03%, its first decline in ten year on the first trading day of a new year.

Inflation surged 3.5% at the end of last week December pushed by prices of manufactured and fuel items versus 3.45% at the end of previous week. The wholesale price index stood at 5.78% in the same period a year ago.

During the week under review, furnace oil increased 5% and bitumen coal rose by 4% and naptha surged by 3%. Coffee and vegetable prices went up while gram, moong, urad and rice got cheaper.

Of the Sensex index stocks, ICICI Bank led the advancers with a rise of 4.2% to 1,279 rupees. State Bank of India shed 0.4% to 2,386 rupees, and HDFC Bank fell 0.08% to 1,696 rupees.

Reliance Communications surged 3.7% to 760.2 rupees and Larsen & Toubro gained 3.9% to 4,220 rupees.

Oil & Natural Gas Corporation jumped 2.6% to 1340 rupees and Cairn India was up 2.3% to 260.6 rupees.

Tata Steel rose 0.3% 929 rupees after the company said it has signed a joint venture agreement with the Steel Authority of India for incorporation of a joint venture company, for coal mining activities in Jharkhand.

Reliance Industries advanced 2.6% to 2,979 rupees on news reports that it has emerged as the highest bidder for the Motipur sugar unit of Bihar State Sugar Corporation at a price of 57 crore rupees, marginally higher than the floor price of 55.36 crore rupees.

National Thermal Power Corporation fell 2.2% to 270.5 rupees. Mahindra & Mahindra shed 1.4% to 824 rupees, Tata Motors slipped 1.3% to 783.8 rupees while and Maruti Suzuki India slid 1.1% to 964 rupees.

Infosys slipped 1.05% to 1,695 rupees, TCS shed 0.9% to 1,009 rupees, Satyam Computers was down 0.6% to 423.5 rupees and Wipro lost 0.3% to 493.9 rupees.