* Stocks bounce back on China, Europe, U.S. data
* Euro rebounds as investors eye ECB for debt moves
* Portugal sells all debt offered, pays record high yields
(Updates with U.S. markets open, changes byline, dateline,
previous LONDON)
By Walter Brandimarte and Jeremy Gaunt
NEW YORK/LONDON, Dec 1 (Reuters) - Better-than-anticipated
economic data in China, Europe and the United States lifted
world stocks on Wednesday, while bets the European Central Bank
could step up its bond buying program partially offset fears
about the euro-zone debt crisis.
Portuguese debt costs fell along with those of other
peripheral euro zone countries as some investors bet the ECB
will take further action at its meeting on Thursday.
Portugal was also able to sell 500 million euros in
12-month T-bills but, in a sign of sagging investor confidence
in the country, yields paid on the debt rose to a euro lifetime
record of 5.281 percent, from 4.813 percent two weeks ago.
Major U.S. and European stock indexes rose more than 1.5
percent while the euro strengthened 0.67 percent and traded
above $1.30, although analysts said the rebound of the European
single-currency was just temporary.
"I think this is just caution ahead of the ECB meeting
tomorrow," said Vassili Serebriakov, senior currency strategist
at Wells Fargo in New York. "If anything, this is a very
tentative bounce until we hear from the ECB tomorrow."
Others said dramatic action after the ECB policy meeting on
Thursday was unlikely but that the spreading euro zone debt
crisis demanded radical measures at some point.
[]
ECONOMIC DATA BOOST
Appetite for risky assets also got a boost from
better-than-expected Chinese factory data in November. The
official Chinese purchasing managers' index (PMI) rose to a
seven-month high of 55.2, in a sign that one of the world's
largest economic engines is in good health. []
In Europe, the euro zone's manufacturing sector expanded at
its fastest pace in four months in November, led by
heavyweights Germany and France. Britain's manufacturing hit a
16-year high.
U.S. private sector payrolls also saw their biggest rise in
three years in November, lifting optimism about the job market
ahead of Friday's key government employment report.
[]
"We're going to focus more on China's data today and the
fact that the ADP report came in better than expected," said
Robert Pavlik, chief market strategist at Banyan Partners LLC
in New York.
The MSCI All-Country World Index <.MIWD00000PUS> climbed
1.6 percent after three consecutive sessions of losses.
The Dow Jones industrial average <> rose 192.12 points,
or 1.75 percent, to 11,198.14, while the Standard & Poor's 500
Index <.SPX> gained 19.68 points, or 1.67 percent, to 1,199.47.
The Nasdaq Composite Index <> was up 47.59 points, or 1.90
percent, at 2,545.82.
In Europe, the FTSEurofirst 300 <> rose 1.8 percent,
while Japan's Nikkei closed 0.5 percent higher. Emerging market
stocks measured by a MSCI benchmark index <.MSCIEF> jumped
nearly 2 percent.
The positive economic data also encouraged investors to
step out of the safe-haven dollar and Treasuries.
The U.S. dollar was down 0.19 percent against a basket of
major currencies, according to the U.S. Dollar Index <.DXY>.
Benchmark 10-year U.S. Treasury notes <US10YT=RR> lost more
than one point in price, boosting their yield to 2.9161 percent
from 2.8 percent late Tuesday.
Commodities also posted gains, with U.S. crude oil prices
<CLc1> jumping 1.6 percent to $85.45 per barrel. Spot prices of
gold <XAU=>, which have been gaining due to the global economic
uncertainty, were practically flat at $1,384.80 an ounce.
(Additional reporting by Rodrigo Campos and Gertrude
Chavez-Dreyfuss; Editing by Clive McKeef)
