* Strong China data spurs risk-taking, Asia stocks up 1.8 pct
* Banks gain, Basel III gives them more time to raise capital
* Basel deal "removes uncertainty" from the market--analysts
* Euro surges over 1 pct, low-yielding yen retreats
* Oil jumps on China growth, U.S. pipeline closure
By Nick Macfie
SINGAPORE, Sept 13 (Reuters) - Shares in Asia and Europe rose on Monday and the euro surged on buoyant Chinese factory data and as a deal on global bank rules gave lenders some respite before having to raise hundreds of billions of dollars in fresh capital.
Japan's benchmark Nikkei average closed 0.9 percent higher, while the MSCI index of Asian shares outside Japan jumped 1.8 percent as encouraging Chinese and U.S. data encouraged investors to return to riskier assets.
An index of leading European shares rose 0.7 percent, while U.S. S&P 500 futures advanced nearly 1 percent, pointing to a stronger opening on Wall Street later in the day.
"We are seeing quite decent data, especially from China, and the U.S. data also helped," said Lorraine Tan, director of Asia equity research at S&P in Singapore.
"We do think markets are bottoming out... Unless there is a major shock, markets will trend upwards."
Chinese factories increased production in August and money growth easily topped analysts' expectations, according to data on Saturday, showing that the economy remained buoyant despite government efforts to clamp down on bank lending and property speculation.
Data on Friday showed U.S. wholesale inventories surged the most in two years in July, adding to signs that economic growth in the third quarter of the year may prove a bit stronger than many forecasters had expected. The U.S. trade gap also narrowed sharply in July.
The reports pushed up major U.S. stock indexes by as much as 0.5 percent.
While the U.S. economy still seems mired in a slow-growth path, recent data have helped dispel some fears that it might be sliding back into recession.
BASEL BUOYS BANK STOCKS
Big banks were among the day's leaders in Asia after global bank regulators agreed in Basel, Switzerland, on Sunday to force banks to more than triple the amount of top-quality capital they must hold in reserve to prevent any repeat of the international credit crisis.
But to ease the burden, regulators gave the banks transition periods to comply. These periods, extending in some cases to January 2019 or later, are longer than many analysts had expected.
Top European lender HSBC rose more than 2 percent at one point in Hong Kong, with some of Japan's leading banks also seeing strong gains.
"It's a mixed blessing for the banks, but I'm sure investors will be happy to get some clarity and allow the market to move on," said Robbert Van Batenburg, head of equity research at Louis Capital Markets in New York, said of the new rules, known as Basel III.
"... The best thing is it removes the uncertainty that was hanging over the market... The markets should take this favourably."
The U.S. Federal Reserve System's Board of Governors said the decision should help minimise future financial meltdowns.
"The agreement represents a significant step forward in reducing the incidence and severity of future financial crises, providing for a more stable banking system that is less prone to excessive risk-taking, and better able to absorb losses while continuing to perform its essential function of providing credit to creditworthy households and businesses."
EURO CLIMBS
The euro surged following the Basel agreement and the upbeat Chinese data, which also propelled the Australian dollar to its highest in four months against the dollar.
The euro rose more than 1 percent against the dollar to $1.2819, topping its 55-day moving average for the first time in a week.
The low-yielding yen faltered as investors moved into riskier assets offering the prospect of stronger returns.
The dollar traded at 84.07 yen after hitting a 15-year low of 83.34 yen last week.
Gold, a traditional safe haven amid bad economic news, was slightly higher. Spot gold was hovering around $1,247 an ounce.
Oil rose to a one-month high, buoyed by strong Chinese industrial output and an extended shutdown of the biggest crude oil pipeline supplying Canadian oil to U.S. refineries in the Midwest.
U.S. crude futures for October climbed 1.3 percent to $77.44 a barrel. (Additional reporting by Charlotte Cooper; Editing by Kim Coghill)