May 4 (Bloomberg) -- Stocks in Europe and Asia rose, U.S. futures advanced and the yen weakened as a report showing China’s manufacturing expanded for the first time in nine months added to signs that the global recession is easing.

Europe’s Dow Jones Stoxx 600 Index climbed 0.7 percent as of 1:39 p.m. in Frankfurt and Standard & Poor’s 500 Index futures expiring in June rose 0.3 percent. The yen declined 0.2 percent against the dollar as demand for the Japanese currency as a refuge from financial turmoil waned.

“This is boosting hopes that China’s economy is expanding again, which would have a positive impact on the rest of the world,” said Walter Harecker, a fund manager who helps oversee about $11 billion at Constantia Privatbank in Vienna.

The CLSA China Purchasing Managers’ Index rose in April on a moderating decline in export orders and government stimulus spending of 4 trillion yuan ($586 billion). U.S. home resales may have been unchanged in March, a sign the market is stabilizing, an industry report today may show. Mexican Health Minister Jose Cordova said yesterday the nation’s swine flu outbreak may have peaked last week.

ArcelorMittal, the world’s biggest steelmaker, rose 10 percent. Rio Tinto Group climbed 4.1 percent as Aluminum Corp. of China said it’s pressing ahead with its investment in the company. Cathay Pacific Airways Ltd., Hong Kong’s biggest carrier, jumped 11 percent after saying reservations withstood a swine-flu case in the city. Vestas Wind Systems A/S climbed 7.2 percent as Citigroup Inc. recommended the shares.

Fiat, GM

Fiat SpA advanced 6.7 percent to 8.02 euros. Italy’s biggest carmaker said yesterday it may spin off its automobile division following a purchase of General Motors Corp.’s European unit. GM rose 4.4 percent to $1.89 in German trading after people familiar with the matter said Fiat may also seek to acquire the Detroit-based automaker’s units in Latin America, China and Russia.

There was no stock and currency trading in London because of a national holiday.

The MSCI Emerging Markets Index of 23 developing economies climbed 3.7 percent to 687.33, the highest level since Oct. 6. India’s Sensex index jumped 6.4 percent, the most in more than six months, while Russia’s Micex rose 2.3 percent. Taiwan’s Taeix index advanced 5.6 percent, extending its two-day gain to 13 percent, the biggest back-to-back rally in more than 18 years, after Goldman Sachs Group Inc. raised its recommendation on the view the nation will increase ties with China.

Copper for July delivery rose $6.30, or 3 percent, to $216.40 a ton on the Comex division of the New York Mercantile Exchange.

The yen declined against nine of the 16 most-traded currencies, weakening to 99.35 per dollar from 99.11.

Corporate bonds in euros rallied, with the Markit iBoxx Euro Non-Financials index climbing 0.2 percent to 89.50, the highest level in a year. The iBoxx Euro Corporate index rose 0.2 percent to a 3 1/2-month high of 83.15.

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net

Last Updated: May 4, 2009 07:44 EDT