* Wall St advances as on sturdy manufacturing data
* European stocks up on data; China drives Asia lower
* Dollar drops vs euro; oil, copper dip on China
(Updates to U.S. trading, changes byline, dateline, previous
LONDON)
By Sinead Carew
NEW YORK, Nov 2 (Reuters) - U.S. and European stocks climbed
on Monday on mixed U.S. economic data and slightly
stronger-than-expected German factory activity, even as weak
Chinese data dragged down Asian markets.
The dollar fell against the euro after comments from two
members of the European Central Bank's governing council lowered
expectations for a boost in its stimulus program. urn:newsml:reuters.com:*:nL1N12X13R
While data showed U.S. manufacturing activity slowed in
October for a fourth month, a rise in new orders offered hope.
Also, construction spending rose in September to the highest
level in 7-1/2 years urn:newsml:reuters.com:*:nL1N12X114.
Oil prices and Asian stock markets fell after China's
factory activity fell for an eighth month in October, albeit at
a slower pace, pointing to continued sluggishness in the world's
second-largest economy. urn:newsml:reuters.com:*:nL3N12U3UH
Activity in Germany's powerful manufacturing sector dipped
last month, compared with September, but beat economists' early
estimates, helping European stocks. The pan-European
FTSEurofirst 300 .FTEU3 stocks index, was up 0.2 percent, with
Germany's Dax .GDAXI up 0.8 percent.
The U.S. and European data gave some support to U.S. stock
markets, where investors put cash to work in the first trading
day of a new month and the start of a fiscal year for mutual
funds, according to Andrew Frankel, co-president of Stuart
Frankel & Co in New York.
"I'm seeing more money flows than fundamental news," said
Frankel, adding that U.S. investors seemed less fearful of the
China data. "It's certainly on their radar but people have grown
a little more comfortable."
The Dow Jones industrial average .DJI rose 88.46 points,
or 0.5 percent, to 17,752, the S&P 500 .SPX gained 13.5
points, or 0.65 percent, to 2,092.86 and the Nasdaq Composite
.IXIC added 46.10 points, or 0.91 percent, to 5,099.85.
Worries over global growth, particularly in China, had
rattled financial markets in recent months, despite steps by the
Chinese authorities to stimulate the economy.
MSCI's main Asia-Pacific index .MIAPJ0000PUS , which tracks
shares in key markets in the Asia Pacific region, touched its
lowest level in two and a half weeks after the China data.
The prospect of higher U.S. interest rates, after the
Federal Reserve left the door open last week to a first increase
since 2006 in December, affected bond yields.
Benchmark 10-year Treasury yields hit their highest level in
over five weeks, while shorter-dated yields hit their highest in
over six weeks on continued expectations of a possible Federal
Reserve rate hike in December.
"It's just still continued follow-through from the Oct. 28
Fed statement," said Justin Hoogendoorn, head of fixed income
strategy at Piper Jaffray & Co. in Chicago. urn:newsml:reuters.com:*:nL1N12X15X
Gold XAU= hit its lowest level since Oct. 5 on bets the
U.S. Federal Reserve will raise interest rates next month. It
last traded at $1,134.96
The dollar was down 0.2 percent against a basket of major
currencies .DXY . The euro EUR= was up 0.3 percent against
the dollar while the yen JPY= was flat against dollar.
urn:newsml:reuters.com:*:nL1N12X13R
Oil prices slid on the prospect of weak Chinese demand and
record-high Russian production. O/R U.S. crude was down 0.6
percent at $46.30 a barrel while Brent crude LCOc1 was last
down 0.9 percent at $48.70 a barrel.