(Adds close of U.S. markets)
* Wall Street soars as bull market rally resumes
* Coronavirus death toll in China rises to 361
* China central bank injects $174 bln of liquidity
* Oil slumps to lows last seen in January 2019
* Yields rise, gold slips as safe-havens lose appeal
By Herbert Lash
NEW YORK, Feb 3 (Reuters) - The dollar strengthened and a gauge of global stocks jumped on Monday, lifted by an unexpected rebound in U.S. manufacturing that helped temper fears that caused stocks overnight in Asia to plunge on the potential impact of the coronavirus in China.
Gold fell 1%, retreating from a four-week high, as China's efforts to protect its economy from the virus and the injection of 1.2 trillion yuan ($174 billion) worth of liquidity into the markets helped stem inflows into safe-haven assets. yields rose, while the Japanese yen and Swiss franc retreated as risk sentiment improved despite a rising infection rate and death toll from the outbreak.
Deaths rose to 361 as of Sunday, up 57 from the previous day, China's National Health Commission said. All deaths have occurred in China, with the exception of a Chinese man who died in the Philippines after traveling from Wuhan, the epicenter of the outbreak. prices fell about 3%, however, on concerns crude demand from China will take a hit, though the possibility of deeper output cuts by the Organization of the Petroleum Exporting Countries and its allies offered some price support.
Shares in China plunged during the first day of trading since China closed equity, currency and bond markets on Jan. 23 for the Lunar New Year, a break that was extended by the government because of the coronavirus. Shanghai Composite index .SSEC fell 7.7%, slicing $420 billion in value from the benchmark, and the yuan opened at its weakest level this year, sliding past 7 per dollar CNY= . Nikkei .N225 dropped 1% to the lowest since November and Australia's benchmark index .AXJO fell 1.3%. edged higher in Europe on relief the UK finally exited the European Union, while U.S. stocks advanced as data showed factory activity unexpectedly rebounded in January after contracting for five straight months amid a surge in new orders. Institute for Supply Management (ISM) said its index of U.S. manufacturing rose to 50.9 last month, the highest since July, from an upwardly revised 47.8 in December. reading above 50 indicates expansion in the manufacturing sector, which accounts for 11% of the U.S. economy.
Joseph LaVorgna, chief economist for the Americas at French bank Natixis in New York, said he was bullish on the U.S. economic outlook and that capital expenditures by corporations should pick up.
"The ISM helped. It was better than expected. We're still in a bull market, there's still a buy-the-dip mentality," LaVorgna said, though he acknowledged "the coronavirus can still play havoc; you got to be worried."
Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto, said traders were bargain-hunting in anticipation of stimulus from the Chinese government.
"Traders are looking for value where they can," he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.31% and its emerging market index lost 0.14%.
The pan-European STOXX 600 index .STOXX rose 0.25%. major Wall Street indexes advanced in a broad rally.
The Dow Jones Industrial Average .DJI rose 143.78 points, or 0.51%, to 28,399.81. The S&P 500 .SPX gained 23.4 points, or 0.73%, to 3,248.92 and the Nasdaq Composite .IXIC added 122.47 points, or 1.34%, to 9,273.40.
The pound GBP= slid after British Prime Minister Boris Johnson set out tough terms for EU talks, rekindling fears Britain would reach the end of an 11-month transition period without reaching a trade deal. GBP= traded at $1.2993, down 1.56% on the day and the dollar index .DXY rose 0.45%.
The euro EUR= down 0.31% to $1.1059, while the yen weakened 0.26% versus the greenback at 108.69 per dollar.
Benchmark 10-year notes US10YT=RR last fell 2/32 in price to lift their yield to 1.5238%. prices fell. Brent crude LCOc1 fell $2.17 to settle at $54.45 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell $1.45 to settle at $50.11 a barrel. Both the global and U.S. benchmarks traded at lows last seen in January 2019. gold XAU= , which posted its best month in five in January, slid 0.85% to $1,576.30 an ounce. U.S. gold futures GCv1 settled 0.3% lower at $1,582.40. GRAPHIC-World FX rates
http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country Wolrd Index Market Cap
http://tmsnrt.rs/2EmTD6j
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