* UK housing survey, strong equities boost sterling
* Nationwide reports 1st UK house price rise since Oct 2007
* UK equities jump 3 percent; Euro hits 3-1/2 week low vs pound
* Focus on G20, ECB rate decision; gilt auction also eyed
LONDON, April 2 (Reuters) - Sterling rose broadly on Thursday, with the euro hitting a 3-1/2 week low against the UK currency, after data showed the first rise in British house prices since October 2007.
Gains on equity markets -- helped as stronger-than-expected U.S. data offered a glimmer of hope for a recovery in the world's largest economy -- also boosted the pound, with the FTSE 100 index of top UK shares jumping by 3 percent.
Focus for the day ahead will be any developments at a summit of Group of 20 leaders in London and an interest rate decision by the European Central Bank.
A survey by Nationwide earlier on Thursday showed UK house prices unexpectedly rose 0.9 percent in March after falling by 1.9 percent in February, taking the annual rate of decline in prices down to 15.7 percent from 17.6 percent.
The news came hot on the heels of a survey on Wednesday showing manufacturing sector activity contracted less than expected last month, boosting hopes that recent substantial UK monetary easing is now feeding through into the wider economy.
"Sterling got a fresh boost from the Nationwide survey as it continues to benefit from more positive news out of the UK," Dublin-based AIB Group Treasury economist Geraldine Concagh said. "If services PMI data on Friday are also strong it would set sterling up for another lift ahead of the weekend."
At 0758 GMT, sterling rose 0.6 percent against the dollar to $1.4539, while the euro fell 0.3 percent to 91.15 pence, close to a three-and-a-half week low of 91.07 pence hit not long after the Nationwide data.
The solid gains against the currencies of the UK's main trading partners pushed sterling up 0.7 points to 77.3 against a basket of currencies, its highest in over a week.
"The improvement in UK data provides a sterling-positive backdrop", which could move the pound towards $1.50 against the dollar, currency analysts at Bank of Scotland Treasury said in a note to clients.
ECB, G20 EYED
Jitters before the European Central Bank interest rate decision also kept the euro under pressure against sterling, analysts said. The ECB is widely expected to cut interest rates by 50 basis points to a record low 1.0 percent, but the focus will be on whether the central bank announces any unconventional measures to further boost euro zone money supply.
The decision is scheduled for 1145 GMT and will be followed at 1230 GMT by a news conference given by ECB President Jean-Claude Trichet.
Investors will also be keeping a close eye on what steps G20 leaders can agree on to tackle the global economic crisis.
Contents of a draft G20 communique made no specific commitment to extra fiscal stimulus, but said regulation would extend to "systemically important hedge funds".
In the UK, investors will also be watching for an auction of gilts maturing in 2039, following last week's failed 2049 gilt auction. The results will be announced after 0930 GMT.
(Reporting by Jessica Mortimer)