* European PMIs trump poor Chinese PMI
* Volkswagen (XETRA:VOWG) shares rebound
* Platinum sinks to lowest since 2009
By Jamie McGeever
LONDON, Sept 23 (Reuters) - European shares rose on Wednesday after business activity data pointed to steady growth across the continent, contrasting starkly with figures that showed the biggest contraction in China's manufacturing sector since the global financial crisis.
The Chinese purchasing managers index intensified fears that a slowdown in the world's second-largest economy will spread more widely, hitting Asian markets, but those fears were later allayed by the European PMIs.
A recovery in the shares of scandal-hit Volkswagen, which had lost more than a third of their value in the first two days of this week, also spurred the recovery in European shares.
S&P mini futures ESc1 pointed to a higher open on Wall Street.
"Headwinds from the emerging market turmoil are not derailing the euro zone recovery," said Marco Valli, chief euro zone economist at Unicredit (MILAN:CRDI).
"While weakness in world trade is unlikely to be reversed soon - the latest news from China points to a further loss of momentum there - the euro zone continues to benefit from past euro depreciation and the recovery in domestic demand," he said.
At midday in Europe the FTSEuroFirst index of leading 300 European shares .FTEU3 was up 0.6 percent at 1,373 points, Germany's DAX .GDAXI and France's CAC 40 .FCHI were up 0.7 percent, and Britain's FTSE 100 .FTSE was up 1.4 percent.
Volkswagen AG VOWG_p.DE was in the spotlight again after the company said a scandal over falsified U.S. vehicle emission tests could affect 11 million of its cars around the globe as investigations of its diesel models multiplied, heaping fresh pressure on CEO Martin Winterkorn. ID:nL5N11S052
The share price fell as much as 8 percent early on Wednesday before rebounding to trade 3 percent higher. It plunged 37 percent over Monday and Tuesday.
Asian stocks, however, posted their biggest single-day fall in a month, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down 2.3 percent, its biggest daily loss since Aug. 24, according to Thomson Reuters data.
The MSCI world index was down 0.1 percent .MIWD00000PUS , marking the fourth consecutive daily loss.
VW SCANDAL SINKS PLATINUM
The preliminary Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) fell to its worst level since March 2009. ID:nL4N11T2OW
"The decline was driven by a fall in new orders and new export orders. Falling demand both domestically and abroad is only going to make the task of achieving 7 percent growth that much harder," said Craig Erlam, senior market analyst at Oanda in London.
The Chinese data came after the U.S. central bank refrained from lifting interest rates for the first time in nearly a decade last week, citing concerns that global problems, and China in particular, may hurt the U.S. recovery.
However, the resilience of European stocks cooled overnight demand for safe-haven fixed-income assets.
The benchmark two-year U.S. Treasury yield US2YT=RR edged up to 0.7 percent, and the yield on the 10-year U.S. bond rose 3 basis points to 2.16 percent US10YT=RR .
Yields on benchmark German bonds also rose as much as 3 basis points. EU2YT=RR EU10YT=RR
The positive reaction in Europe to the PMIs helped the euro to rise a third of one percent to $1.1160 EUR= . The dollar was little changed against the yen at 120.20 yen JPY= .
In emerging markets, Brazil's real languished at a record low against the dollar, having fallen through the 4 per dollar level on Tuesday for the first time ever. BRL= . It has now lost around 35 percent this year.
In commodities U.S. crude futures CLc1 rose 0.7 percent to $46.70 per barrel, while Brent futures LCOc1 rose 0.5 percent firmer to $49.35.
Copper CMCU3 recovered in European trading from near four-week lows overnight in Asia. It was last up 0.5 percent having earlier posted its biggest one-day drop in more than two months as fund and speculative selling pushed prices down following the Chinese PMI report.
Platinum XPT= slid to a fresh 6-1/2-year low on fears about reduced demand from the auto sector, where it is used in diesel catalysts to clean up exhaust emissions.
It fell to its lowest since January 2009 at $925.30 an ounce, before recouping some losses to trade up 0.3 percent at $937.20.
The metal has been hurt by news of Volkswagen's falsification of U.S. vehicle emission tests as investors believed it could affect demand for diesel cars. ID:nL1N11S21N