By Daniela Silberstein Dec. 1 (Bloomberg) -- European and Asian shares gained as China’s manufacturing grew at the fastest pace in five years and concern eased that losses from a possible default by Dubai World will spread. U.S. stock-index futures advanced. HSBC Holdings Plc and Deutsche Bank AG rose at least 1.6 percent. BHP Billiton Ltd. led basic-resources companies higher. Alstom SA and Schneider Electric SA climbed more than 2 percent as the two companies are in exclusive talks to by Areva SA’s power-grid subsidiary. Nissan Motor Co. and Komatsu Ltd. increased after the Bank of Japan announced an emergency policy meeting, sending the yen lower against the dollar. Europe’s Dow Jones Stoxx 600 Index added 1.3 percent 242.15 as of 8:05 a.m. in London. The measure has surged 22 percent this year amid signs the global economy is recovering. Stocks in the European benchmark index are valued at about 54 times reported earnings, near the highest level since June 2003, according to data compiled by Bloomberg. “As investors continue to assess the potential fall-out of the Dubai World debt default -- and seem increasingly convinced that the impact won’t be as drastic as had perhaps been thought at the end of last week -- the major global equity markets continue to find support,” Ben Potter, a research analyst at IG Markets in Melbourne, wrote in a note. The MSCI Asia-Pacific Index rallied 1.1 percent today, and futures on the Standard & Poor’s 500 Index added 0.4 percent. The benchmark measure for U.S. equities gained 0.4 percent yesterday as Dubai World, the investment company seeking to delay repayment on some of its $59 billion of liabilities, said it is in “constructive” initial talks with banks to restructure about $26 billion in debt. HSBC, Deutsche Bank HSBC climbed 1.6 percent to 718 pence. Europe’s largest bank expects concerns about Dubai World’s debt will have a limited impact on financial markets, Apple Daily reported, citing Vincent Cheng, chairman of the bank’s Asian operations. Deutsche Bank, Germany’s biggest lender, increased 2 percent to 49 euros. Management board member Juergen Fitschen said concerns over Dubai World’s request for a standstill on debt repayment are “manageable.” BHP, the world’s largest mining company, rose 2.1 to 1,895.5 pence. Rio Tinto Group, the third-biggest, added 1.5 percent to 3,135 pence. Alstom advanced 3.6 percent to 48.32 euros. The maker of high-speed trains and energy-generation equipment and Schneider Electric, a maker of electrical circuits, are in exclusive negotiations with Areva of France for its power-grid subsidiary, knocking out overseas bids from General Electric Co. and Toshiba Corp. Schneider added 2.2 percent to 74.50 euros. Vivendi, Nissan Vivendi SA increased 2.3 percent to 19.64 euros. GE and the owner of the world’s largest music company agreed on a $5.8 billion valuation for the French company’s 20 percent stake in NBC Universal, according to two people with knowledge of the discussions. Nissan, which gets 35 percent of its revenue from North America, gained 2.1 percent to 639 yen and Komatsu, which generates 22 percent of sales from the Americas, jumped 4 percent to 1,766 yen on speculation possible steps by the central bank aimed at weakening the yen will help boost the value of Japanese exports. The BOJ left the benchmark interest rate at 0.1 percent at an emergency policy meeting. Australia’s central bank raised its benchmark interest rate by a quarter percentage point for an unprecedented third straight month as evidence mounts that the nation’s economy is strengthening. Manufacturing Reports China’s purchasing managers’ index released today by HSBC Holdings Plc rose to a seasonally adjusted 55.7 in November from 55.4 the previous month. The government’s PMI, also released today, held at an 18-month high. Manufacturing in the U.S. probably expanded for a fourth consecutive month, putting factories at the forefront of the recovery, economists said before reports today. The Institute for Supply Management’s manufacturing index fell to 55 from October’s three-year high of 55.7, according to the median forecast of 72 economists surveyed by Bloomberg News. Other U.S. reports may show pending sales of existing homes and construction spending declined in October. To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net

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