* Wall St advances as on sturdy manufacturing data
* European stocks up on data; China drives Asia lower
* Dollar drops vs euro; oil, copper dip on China (Updates to U.S. trading, changes byline, dateline, previous LONDON)
By Sinead Carew
NEW YORK, Nov 2 (Reuters) - U.S. and European stocks climbed on Monday on mixed U.S. economic data and slightly stronger-than-expected German factory activity, even as weak Chinese data dragged down Asian markets.
The dollar fell against the euro after comments from two members of the European Central Bank's governing council lowered expectations for a boost in its stimulus program. urn:newsml:reuters.com:*:nL1N12X13R
While data showed U.S. manufacturing activity slowed in October for a fourth month, a rise in new orders offered hope. Also, construction spending rose in September to the highest level in 7-1/2 years urn:newsml:reuters.com:*:nL1N12X114.
Oil prices and Asian stock markets fell after China's factory activity fell for an eighth month in October, albeit at a slower pace, pointing to continued sluggishness in the world's second-largest economy. urn:newsml:reuters.com:*:nL3N12U3UH
Activity in Germany's powerful manufacturing sector dipped last month, compared with September, but beat economists' early estimates, helping European stocks. The pan-European FTSEurofirst 300 .FTEU3 stocks index, was up 0.2 percent, with Germany's Dax .GDAXI up 0.8 percent.
The U.S. and European data gave some support to U.S. stock markets, where investors put cash to work in the first trading day of a new month and the start of a fiscal year for mutual funds, according to Andrew Frankel, co-president of Stuart Frankel & Co in New York.
"I'm seeing more money flows than fundamental news," said Frankel, adding that U.S. investors seemed less fearful of the China data. "It's certainly on their radar but people have grown a little more comfortable."
The Dow Jones industrial average .DJI rose 88.46 points, or 0.5 percent, to 17,752, the S&P 500 .SPX gained 13.5 points, or 0.65 percent, to 2,092.86 and the Nasdaq Composite .IXIC added 46.10 points, or 0.91 percent, to 5,099.85.
Worries over global growth, particularly in China, had rattled financial markets in recent months, despite steps by the Chinese authorities to stimulate the economy.
MSCI's main Asia-Pacific index .MIAPJ0000PUS , which tracks shares in key markets in the Asia Pacific region, touched its lowest level in two and a half weeks after the China data.
The prospect of higher U.S. interest rates, after the Federal Reserve left the door open last week to a first increase since 2006 in December, affected bond yields.
Benchmark 10-year Treasury yields hit their highest level in over five weeks, while shorter-dated yields hit their highest in over six weeks on continued expectations of a possible Federal Reserve rate hike in December.
"It's just still continued follow-through from the Oct. 28 Fed statement," said Justin Hoogendoorn, head of fixed income strategy at Piper Jaffray & Co. in Chicago. urn:newsml:reuters.com:*:nL1N12X15X
Gold XAU= hit its lowest level since Oct. 5 on bets the U.S. Federal Reserve will raise interest rates next month. It last traded at $1,134.96
The dollar was down 0.2 percent against a basket of major currencies .DXY . The euro EUR= was up 0.3 percent against the dollar while the yen JPY= was flat against dollar. urn:newsml:reuters.com:*:nL1N12X13R
Oil prices slid on the prospect of weak Chinese demand and record-high Russian production. O/R U.S. crude was down 0.6 percent at $46.30 a barrel while Brent crude LCOc1 was last down 0.9 percent at $48.70 a barrel.