RPT-GLOBAL MARKETS-Asian stocks advance; China data boosts hopes

(Repeats to widen distribution)

* China manufacturing gathers pace in September-PMI survey

* Euro pauses below five-month high, Asian stocks rise

* Oil above $80 boosted by hopes of demand recovery

By Sanjeev Miglani

SINGAPORE, Oct 1 (Reuters) - Asian stocks rose on Friday as stronger-than expected economic indicators from China and the United States boosted confidence in the global economic recovery.

European shares also rose, after slipping in the previous four sessions amid debt concerns in the euro zone. The FTSEurofirst 300 <.FTEU3> rose 0.2 percent, Britain's FTSE 100 <.FTSE> gained 0.6 percent, Germany's DAX rose 0.4 percent and France's CAC 40 <.FCHI> was up 0.3 percent. [.L] [.EU]

Chinese manufacturing gathered momentum last month, handily beating market forecasts and providing further evidence that the economy is pulling smoothly out of a second-quarter slowdown.

The MSCI index of Asia Pacific stocks outside Japan <.MIAPJ0000PUS> was up 0.34 percent compared with a rise of 0.24 before the release of China's Purchasing Managers Index. The index gained more than 17 percent in the last quarter.

"This looks like the real deal. It's not just inventory correction. We think that end demand is picking up in China and the economy has stabilised after the summer lull," said Frederick Neuman, co-head Asian economics, HSBC in Hong Kong.

China PMI: http://link.reuters.com/gaw58n

Japan CPI: http://link.reuters.com/peb46p

Asia PMI: http://link.reuters.com/fef46p

Japan's Nikkei <.N225> average closed up 0.37 percent on Friday, helped by short-covering after sharp falls the previous day and after U.S. economic data provided a degree of optimism.

The index gained 6.2 percent in September, it is more than 2 percent off the peak hit after Japanese authorities conducted currency market intervention on Sept. 15 to weaken the yen. [.T]

"Japanese stocks are recouping some ground as investors appear to be correcting extreme pessimism triggered yesterday by the yen's advance and worries about European finance problems," said Koichi Nosaka, a market analyst at Securities Japan Inc.

DATA WATCH

U.S. data on Thursday showed new jobless benefits fell last week and regional manufacturing grew faster than expected.

Later on Friday, the Institute for Supply Management is scheduled to release U.S. manufacturing data.

U.S. Treasury prices slipped as investors turned to stocks and the dollar held steady after dropping to an eight-month low against a basket of currencies the previous day. [US/T]

The euro paused below a five-month high on the dollar hit the previous day, helped by data showing euro zone banks are relying less on funds from the European Central bank. [FRX/]

The dollar dipped 0.1 percent to 83.47 yen , but stayed above the previous day's low at 83.16 yen and last month's 15-year trough below 83.00 that had prompted Japanese authorities to intervene for the first time in six years.

The Australian dollar jumped on optimism that the strong data from China augured well for the country's resource exports.

Oil rose above $80 on Friday, staying at a seven-week high, as the renewed momentum in China's manufacturing sector pointed to stronger demand. Copper also advanced on hopes of greater Chinese demand. [O/R] [MET/L]

But gold, widely seen as a safe haven, also ticked up, hovering within sight of a lifetime high, although traders said the improving data from China and the U.S. could curb gains.

Traders said spot gold , which stood at $1,310.40 an ounce after hitting a record around $1,315 the previous day, remained volatile as investors watched for signs of a firmer U.S. recovery. [GOL/]

"I guess speculation will still be rife as to the state of the U.S. economy. The need or not for a QE2 (second round of quantitative easing) from the Fed," said Darren Heathcote, head of trading at Investec Australia in Sydney. (Additional reporting by Charlotte Cooper and Aiko Hayashi in TOKYO; Editing by Alex Richardson)