UK Stocks Factors to watch on Friday, Oct 1

LONDON Oct 1 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening flat to 12 points higher on Friday, according to financial bookmakers, following overnight strength in Asia, with oil and mining stocks likely to be boosted by firmer commodity prices.

The UK blue-chip index looks set to open up as much as 0.2 percent after it closed 20.65 points, or 0.4 percent, lower at 5,548.62 on Thursday.

The UK benchmark gained 6.2 percent in September and 12.8 percent in the third quarter.

Asian stocks rose on Friday as stronger-than expected economic data from China and the United States boosted confidence in the global economic recovery.

Chinese manufacturing gathered momentum last month, handily beating market forecasts and providing further evidence that the economy is pulling smoothly out of a second-quarter slowdown.

And new U.S. claims for jobless benefits fell last week, a sign of an improving labour market, while Midwest business activity grew more than expected in September. Also, U.S. second-quarter growth was revised a touch higher on firmer consumer spending.

Wall Street ended its best quarter in a year on Thursday with the S&P and Nasdaq logging in the biggest monthly gains since April 2009, as the data showed the economy isn't in such bad shape.

On the domestic economics front, investors were waiting for September CIPS manufacturing PMI data, scheduled for release at 0828 GMT.

European Union finance ministers met on Friday in a fresh attempt to agree a common approach to taxing banks for the cost of crises although documents prepared by aides for the meeting showed agreement was unlikely. [ID:nLDE68T2JU]

Across the Atlantic, the final reading of the Reuters/University of Michigan consumer sentiment index for September will be released at 1355 GMT. The U.S. Institute for Supply Management will release at 1400 GMT its September manufacturing index. Economists in a Reuters survey expect a reading of 54.5 versus 56.3 in August.

* Nikkei pares gains, hit by futures selling [ID:nTOE69003P]

* Wall St slips, but logs best quarter in a year [ID:nN30135879]

* Asian stocks rise as China data boosts hopes [ID:nSGE69002Z]

* Euro, Aussie edge up as China data supports risk [ID:nTOE690037]

* Oil stays above $80 on strong China, U.S. economic data [ID:nSGE69001H]

* Copper hits fresh two-year high on upbeat China PMI data [ID:nSGE69002N]

* Treasuries dip in Asia as stock rise weighs [ID:nTOE690020]

UK stocks to watch on Friday:

BHP BILLITON (BLT.L)

BHP Billiton said it expected to lodge a motion within the next few days to challenge a lawsuit filed by Potash Corp (POT.TO) to fend off the miner's $39 billion hostile takeover bid. [ID:nSGE690008]

CAIRN ENERGY (CNE.L), VEDANTA RESOURCES (VED.L)

Cairn Energy's proposed stake sale in Cairn India (CAIL.BO) to Vedanta Resources may get delayed considerably as the Indian petroleum ministry is expected to seek more information from the parties, the Financial Express newspaper reported. [ID:nSGE69002Q]

BP (BP.L)

Kuwait Foreign Petroleum Exploration Company (KUFPEC) is interested in buying BP's stake in the Nam Con Son gas project off the coast of Vietnam, a Vietnamese newspaper reported. [ID:nHAN442796]

BURBERRY (BRBY.L)

The fashion company gained on Thursday on the back of revived takeover gossip, the Daily Mail market report said. It pointed to rumours in the fashion industry that chief executive Angela Ahrendt is keen on a tie-up with a U.S. player.

AZ ELECTRONIC MATERIALS

AZ Electronic Materials is planning a listing in the London market in what could be one of the biggest U.K. initial public offerings of a private equity-backed group this year, the Financial Times said. [ID:nLDE690007]

HELPHIRE (HHR.L)

The accident-claim handler reports full-year results.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

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