World stocks and oil prices extended gains and government bonds tumbled on Friday after closely-watched data showed the U.S. economy lost a fewer-than-expected 345,000 jobs in May.

U.S. May non-farm payrolls fell 345,000 last month, compared with a consensus forecast from 520,000. April's figures were revised to show a smaller fall of 504,000 from an initial estimate for a decline of 539,000, MSCI world equity index <.MIWD00000PUS> gained 0.7 percent while the FTSEurofirst 300 index <.FTEU3> was up 1.5 percent.

U.S. crude oil surged above $70 a barrel, hitting a fresh seven-month high.

The June bund futures fell 75 ticks. U.S. benchmark 10-year note and 30-year bond fell more than a full point after the data. The dollar <.DXY> lost a third of a percent against a basket of major currencies.

(Reporting by Natsuko Waki)

Crude oil Jobs