* U.S. manufacturing grows, construction spending falls
* Caterpillar to expand in Brazil, shares rise
* China, Australia data ease concerns on global economy
* Indexes up: Dow 2.3 pct, S&P 2.7 pct, Nasdaq 2.7 pct (Updates to late afternoon, changes byline)
By Rodrigo Campos
NEW YORK, Sept 1 (Reuters) - Wall Street rose more than 2 percent on Wednesday and was set to record its best day in eight weeks as U.S. and Asian economic data soothed worries about a global economic slowdown.
Buyers found support after new data showed U.S. factory activity grew faster than forecast and China's manufacturing staged a moderate rebound, while Australia's economy grew at its fastest pace in three years.
The advance was broad-based, with about five stocks rising for every one that fell on the New York Stock Exchange and Nasdaq. Economically sensitive sectors like industrials and basic materials posted the biggest gains.
Caterpillar Inc, a heavy equipment maker sensitive to changes in economic sentiment, rose 4.3 percent to $67.98. Caterpillar said it will invest $180 million over two years to expand manufacturing in Brazil, signaling confidence in emerging markets.
Traders said the lack of liquidity in the market helped exaggerate gains, as few sellers countered buyers who leapfrogged each other's bids.
"There's a large bearish sentiment out there, and people are more concerned that the market moves sharply up, and that catches them off guard rather than there being tremendous pressure to move the market lower," said Joe Grecco, managing director at Meridian Equity Partners in New York.
"There's only a few bullets left on the sell side. So here comes some positive data, and the market's going to rally."
The Dow Jones industrial average gained 233.18 points, or 2.33 percent, to 10,247.90. The Standard & Poor's 500 Index rose 28.40 points, or 2.71 percent, to 1,077.73. The Nasdaq Composite Index added 56.50 points, or 2.67 percent, to 2,170.53.
The Asian economic data boosted oil futures by nearly 3 percent to $73.94 a barrel and lifted the energy sector. The NYSE Arca Oil stock index rose 3.8 percent.
Metals prices advanced on the Chinese data, lifting copper to its highest level in more than four months.
Shares of aluminum producer Alcoa Inc, a Dow component, gained 2.8 percent to $10.50, while Freeport McMoRan Copper & Gold Inc climbed 5.2 percent to $75.73.
Investors shrugged off a report from ADP Employer Services showing private U.S. companies unexpectedly cut 10,000 jobs in August as well as government data indicating U.S. construction spending fell to its lowest rate in 10 years.
Shares of Burger King Holdings Inc shot up 15.1 percent to $18.94. The No. 2 U.S. hamburger chain may put itself up for sale and has already talked with potential buyers, a source said.
In the options market, puts outpaced calls in exchange-traded funds that track the S&P 500 index and the Nasdaq, suggesting investors are worried about the day's sharp rally. (Additional reporting by Angela Moon; editing by Jeffrey Benkoe)