* Stocks rise on revived hopes for Greece bailout
* US stocks boosted by upbeat U.S. economic data, mergers
* Dollar gains vs major currencies, sterling plummets
(Updates with closing prices)
By Manuela Badawy
NEW YORK, March 1 (Reuters) - Global stocks rose on Monday,
helped by signs Greece is closer to a bailout deal and AIG's
sale of its Asian unit, while the British pound plunged versus
the dollar on political uncertainty in Britain.
U.S. copper prices <HGc1> settled with strong gains, though
well off the 7-week peak achieved earlier in the session as top
producer Chile restarted mines closed after a massive weekend
earthquake.
Oil prices <CLc1> ended almost $1 a barrel weaker to settle
at $78.70 a barrel after seesaw trading due to a stronger
dollar and profit-taking.
The dollar also rose against the euro.
"It's continued concern about sovereign risk both for the
euro and the pound," said Sophia Drossos, co-head of global
currency strategy at Morgan Stanley in New York. "These
sovereign risk issues are not going to go away very quickly."
U.S. assets held their gains after data showed U.S.
consumer spending increased slightly faster than expected in
January. Separately, the U.S. manufacturing sector grew in
February, although at a slower rate than forecast.
[]
U.S. construction spending, however, fell to its lowest
level since June 2003 in January. []
"The manufacturing sector does continue to contribute to
the U.S. economic recovery, unlike, say, housing or
employment," said Kenneth Kim, economist at Stone & McCarthy
Research Associates in Princeton, New Jersey.
The Dow Jones industrial average <> closed up 0.76
percent, at 10,403.79. The Standard & Poor's 500 Index <.SPX>
rose 1.02 percent, at 1,115.71. The Nasdaq Composite Index
<> ended higher 1.58 percent, at 2,273.57.
A deal by Germany's Merck KGaA <MRCG.DE> to buy Millipore
Corp <MIL.N> also boosted Wall Street. The merger and
acquisition activity indicated that investors "think the worst
is over," said John Massey, portfolio manager at SunAmerica
Asset Management in Jersey City, New Jersey.
The pan-European FTSEurofirst 300 <> closed up 1.2
percent lifted by mining and oil shares, while world stocks as
measured by MSCI <.MIWD00000PUS> rose 0.94 percent. Prudential
<PRU.L> slumped 12 percent after it said it would buy AIG's
Asian unit. Emerging market equities gained 1.4 percent.
THE DOLLAR'S STRENGTH
As investors surveyed Greece's debt woes, renewed support
for Greece by the European Economic and Monetary Affairs
Commission somewhat eased fears, as Commissioner Olli Rehn said
the euro zone stands ready to take coordinated action in
support of Greece. []
German Chancellor Angela Merkel said she believes Greece
can fulfill its budget consolidation targets and that those
steps are the best way to stop or minimize speculation against
the euro. []
The euro <EUR=> fell 0.48 percent at $1.356, paring some of
its losses after positive comments over a bailout package for
Greece.
Britain's pound fell more than 2 percent to its biggest
one-day drop in a year on worries about a coming general
election and its impact on the UK economy. The pound was at
$1.4995 <GBP=D4>, down 1.67 percent after earlier hitting a low
of $1.4781.
An opinion poll published on Sunday suggested Britain's
ruling Labour Party could remain the biggest party after this
year's general election but without a majority in parliament.
The dollar rose against a basket of major trading-partner
currencies, with the U.S. Dollar Index <.DXY> up 0.65 percent
at 80.88 from a previous session close of 80.362.
Against the Japanese yen, the dollar <JPY=> was up 0.46
percent at 89.26, while the pound was at $1.4985 <GBP=D4>, down
1.72 percent after earlier hitting a low of $1.4781.
U.S. Treasury debt prices were steady as investors were not
altering their economic outlook despite higher stocks. The
benchmark 10-year U.S. Treasury note <US10YT=RR> was up 1/32
with the yield at 3.6136 percent from 3.62 percent late on
Friday.
Japan's Nikkei average rose 0.5 percent on Monday, with
metal shares such as Sumitomo Metal Mining Co <5713.T> climbing
on a jump in copper prices. The benchmark Nikkei <>
gained 46.03 points to 10,172.06,
(Additional reporting by Wanfeng Zhou and Ryan Vlastelica in
New York, Jeremy Gaunt in London; Editing by Kenneth Barry)
