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Private employers added 297,000 jobs in December, triple the median estimate by economists and up from the gain of 92,000 in November, an ADP Employer Services report showed on Wednesday.

The news reduced early losses in stock index futures, though the stock market was still expected to open lower. The jobs report helped send the price of the 30-year Treasury bond a full point lower.

"You cannot ignore the strength of this report," Tom Porcelli, a U.S. economist at RBC Capital Markets. "With small business now beginning to start to ramp up hiring, it's safe to feel better about the labor backdrop."

Adding to the rosy picture, the number of planned layoffs at U.S. firms fell last month to the lowest level in 10 years, according to a report by consultants Challenger, Gray & Christmas Inc.

Tempering some of the optimism on Wednesday, an industry group said applications for home mortgages ebbed in the last couple of months of the year, with loan rates hovering around their highest levels in seven months.

The U.S. dollar extended gains against the yen and the euro.

The ADP figures came ahead of the government's much more comprehensive labor market report due on Friday, which will include both public and private sector employment.

That report is expected to show a rise in overall nonfarm payrolls of 140,000 in December, based on a recent Reuters poll of analysts, but a rise in private payrolls of 145,000.

Economists often use the ADP report to fine-tune their forecasts for the payrolls numbers, though it is not always accurate in predicting the outcome.

The ADP report is jointly developed with Macroeconomic Advisers LLC.

(Reporting by Jonathan Spicer)

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 2.3 percent for the week ended December 31 and dipped 3.9 percent in the prior week.

The index has been dragged lower since October by applications to refinance loans, as a spike in interest rates reduced incentives for the homeowners that can qualify under today's tight credit standards. The MBA expects total loan originations will drop to $967 billion this year, down 36 percent from 2010 and less than half that of 2009.

Fixed 30-year mortgage rates jumped to 4.93 percent in the week ending December 24, the highest since May 7, before ending the year at 4.82 percent, the MBA said. The rate is three-quarters of a percentage point higher since early October, as reports of solid consumer spending, and expectations of government and Federal Reserve stimulus plans lifted 2011 outlooks.

Relatively soft application volume follows other recent data points that suggest the U.S. housing market may be on the verge of another downturn. Single-family home prices in October dropped for the fourth straight month, according to the latest Standard & Poor's Case-Shiller index, and analysts are predicting more declines under the weight of foreclosures.

However, housing may draw some demand if recent economic strength gains momentum. The combination of economic recovery and relatively low interest rates has helped boost pending sales of previously-owned homes more than expected in November, the National Association of Realtors said last week.

Broken down, the MBA's seasonally adjusted index of refinancing applications index rose 3.9 percent in the latest week but fell 7.2 percent for the week ended December 24. The index of loans earmarked for home purchases fell 0.8 percent and rose 3.1 percent in those weeks.

(Reporting by Al Yoon; Editing by Diane Craft)

Dogan Yayin is also preparing to sell its flagship Hurriyet daily newspaper separately, another source close to the process told Reuters, adding investment bank Goldman Sachs will invite initial bids by February1.

The starting price for the assets on sale, other than Hurriyet, was expected to be $1.6-$1.8 billion, and U.S. private equity funds KKR and TPG were among the shortlisted bidders, sources said.

A Dogan Yayin official declined to comment on plans for Hurriyet's sale.

Dogan Yayin, embroiled in a legal battle against crippling tax fines, said last month that while it was selling media units, it would not withdraw from the sector entirely.

Hurriyet shares jumped 11 percent to 2.06 lira at 0930 GMT, with Dogan Yayin shares up 3.5 percent to 2.06 lira and parent company Dogan Holding up 1.8 percent at 1.15 lira.

In October, Dogan Holding sold its controlling stake in fuel retailer Petrol Ofisi to Austrian group OMV, its joint venture partner, for 1 billion euros ($1.3 billion).

(Editing by Louise Heavens and Dan Lalor)

($1 = 0.7530 euro)

Oil fell for a second day as investors took profits from a sharp year-end rally. Gold inched up, though, after sinking more than 2 percent in the previous session.

The fall in commodities to their lowest level in seven weeks weighed on shares of resource companies in early Asia trade, although market analysts said it was likely to have a limited impact.

"I would expect Asian stocks to be slightly weaker although in Japan the weaker yen will probably help its important export sector," said Jamie Coutts, a technical analyst at BGC Securities in Tokyo.

The MSCI index of Asian shares excluding Japan .MIAPJ0000PUS fell 0.50 percent while Japan's benchmark Nikkei .N225 was little changed, shrugging off concerns about the lower commodity prices and holding on to the previous day's gains.

But analysts say stocks will likely continue to be supported by optimism that the U.S. economy is gathering momentum, albeit slowly.

"Investors are focusing on the U.S. payroll data this week (Friday), so they may stay on the sidelines for this week, but the mood is positive," said Hiroichi Nishi, general manager at Nikko Cordial Securities.

The U.S. dollar bounced from three-week lows against the euro on Tuesday and held firm in early Asia trade at around 82 yen after the upbeat U.S. manufacturing data, and more gains are seen likely given the heavy sales of euro zone bonds anticipated this year.

The dollar index which measures the greenback's performance against a basket of currencies .DXY rose 0.2 percent to its highest level since Dec 30.

"Incoming U.S. data is quite good and that's part of the reason why I think the dollar is going to remain with a reasonable bid tone," said Richard Grace, chief currency strategist at Commonwealth Bank.

There was little reaction in Asian markets to minutes of the Federal Reserve's December meeting released on Tuesday, which revealed policy makers felt the U.S. economy still needed help despite signs of strength.

The U.S. economy, having emerged from its deepest recession in generations in the summer of 2009, has since expanded in fits and starts. Gross domestic product rose at a 2.6 percent annual rate in the third quarter, a pace still seen as too low to bring down the country's 9.8 percent jobless rate.

Data showed new orders received by U.S. factories rose in November and orders, excluding transportation, recorded their largest gain in eight months.

The stronger dollar weighed on copper futures after prices slid from record highs in the previous session that saw commodities suffer their biggest daily fall in seven weeks.

Crude oil slipped 20 cents to $89.18 a barrel after sliding 2.4 percent on Tuesday, but spot gold rose 0.3 percent to $1,383.40 an ounce.

(Additional reporting by Ian Chua in SYDNEY, Editing by)

Volume was strong for a second day as investors reshuffled their portfolios at the beginning of the year, and analysts said the attractiveness of equities was intact.

Recent stock gainers topped Tuesday's list of losers, falling as copper, oil and other commodities slipped from multiyear highs.

The S&P materials index .GSPM fell 0.5 percent and the energy index .GSPE lost 0.6 percent. Materials and energy were among the top-performing sectors in 2010.

"The S&P is pretty buoyant because of the fact that there seems to be a little bit of a renewed interest in the market," said Nick Kalivas, senior equity index analyst at MF Global in Chicago.

"I think it's subtle, but I do think it's present. How long it lasts is obviously the million dollar question."

Shares of grocer Supervalu Inc (SVU.N) fell more than 6 percent and was the top percentage decliner on the S&P 500 after Morgan Stanley told investors to cut holdings in the stock, saying rising food costs will crimp margins. Safeway Inc (SWY.N) and Whole Foods Market (WFMI.O) also slid.

The Dow Jones industrial average .DJI added 20.43 points, or 0.18 percent, to 11,691.18. The Standard & Poor's 500 Index .SPX dipped 1.67 points, or 0.13 percent, to 1,270.20. The Nasdaq Composite Index .IXIC was off 10.27 points, or 0.38 percent, to 2,681.25.

The S&P and Nasdaq pared losses modestly and the Dow edged higher following minutes from the Federal Reserve's December policy meeting that showed officials felt the U.S. economic recovery was still weak enough to warrant monetary support in the form of bond purchases by the Fed.

The market was also supported by strength in defensive shares, including the utilities and telecom sectors. The defensive tone aided blue chips as the Dow ended higher.

The market's weakness followed a strong start to the new trading year on Monday. The Dow and S&P 500 recently hit two-year highs as data pointed to a U.S. recovery.

While many analysts see another year of gains for the S&P 500, Morgan Stanley offered a contrarian view, forecasting the S&P 500 would end the year lower.

Shares of Supervalu dropped 6.3 percent to $9.00. Safeway was down 3.8 percent at $21.64, and Whole Foods fell 3.4 percent to $49.04.

About 8.38 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, just below last year's estimated daily average of 8.47 billion.

Declining stocks outnumbered advancing ones on the NYSE by 1,889 to 1,103, while on the Nasdaq, decliners beat advancers 1,805 to 844.

(Reporting by Leah Schnurr; Editing by Kenneth Barry)