* FTSE rises on oil, mining shares
* UK manufacturing contracts at slowest rate in a year
* Chinese PMI data boost sentiment, Asian markets
* Sterling climbs to highest since November vs dollar
By Catherine Bosley
LONDON, June 1 (Reuters) - Optimism about the global economy
lifted crude and metal prices, boosting commodity stocks and
pushing Britain's top share index up 1.8 percent late morning on
Monday.
At 1007 GMT the FTSE 100 <> was up 78.17 points at
4,496.11. The British benchmark rose 4.1 percent last month --
its third monthly rise in a row and the longest winning streak
in two years and is on track for its highest close since early
January.
The index closed 0.7 percent higher on Friday.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> jumped more than 2 percent to its highest point
since October, after data showed China's official purchasing
managers index stayed above the 50 level, which separates
contraction from expansion, for a third straight month.
The news raised confidence the struggling global economy may
have turned a corner.
"It's a general across-the-board rally," said David Buik,
senior partner at BGC Partners in London, adding that there was
a lot of momentum trading building on Wall Street's rise on
Friday and Asian markets.
"Any kind of improvement in the export and import business
of the United States or Europe is going to come as a result of
China," he said of the Chinese PMI data. "Any positive economic
data that comes out of China has to be very, very positive."
U.S. stock futures <SPc1> <DJc1> indicated Wall Street would
open higher.
On the FTSE, mining stocks led the charge higher, lifted by
firmer metals prices, with Vedanta Resources <VED.L>, BHP
Billiton <BLT.L>, Rio Tinto <RIO.L>, Xstrata <XTA.L> and
Kazakhmys <KAZ.L> rising between 4 and 7.7 percent.
Rio Tinto has agreed to extend the deadline by which major
Chinese shareholder Chinalco must confirm whether it will help
fund the planned expansion of Rio's Yarwun 2 Alumfina refinery.
SIGNS OF LIFE?
UK data also showed signs that the economic slump may be
easing. Britain's manufacturing sector contracted at its slowest
pace in a year in May, but the market was expecting a healthier
reading and the FTSE showed little reaction. [].
U.S. crude oil motored past $67 per barrel to a seven-month
high, sending shares in BP <BP.L>, Royal Dutch Shell <RDSa>L>
and BG Group <BG.L> up between 1.2 and 2.2 percent.
Oil giant Shell plans to cut 350-450 senior management roles
as part of its restructuring programme, according to a website
to which employees post internal information.
The FTSE has risen 30 percent since its low for the year on
March 9. But Buik at BGC said he was unsure how long the FTSE's
resurgence would continue.
"Little bits of economic data that come out have shown some
improvement but many of us are scratching the back of our heads
to decide the weight of this rally," he said.
Shares in Barclays <BARC.L> were up 3.8 percent, Standard
Chartered <STAN.L> rose 1.3 percent, Lloyds <LLOY.L> was up 2.8
percent, and HSBC gained 1.53 percent.
Life insurers and other financials also rose, with Aviva
<AV.L> up 7.7 percent and Man Group <EMG.L> up 4.5 percent.
Sterling <GBP=D4> climbed to its strongest level since early
November against the U.S. dollar as investors were more
comfortable holdings assets perceived as riskier.
In the United States, officials said General Motors Corp
will file for bankruptcy on Monday, forcing the 100 year-old
automaker once seen as a symbol of American economic might and
dynamism into a new and uncertain era of government ownership.
The move removes short-term uncertainty from the market,
traders said.
(Editing by Mike Nesbit)
