UK Stocks-Factors to watch on Weds Feb 1

LONDON Feb 1 (Reuters) - Britain's FTSE 100 index was seen opening up 10-20 points, or as much as 0.4 percent on Wednesday, the first session of a new month, according to financial bookmakers, tracking a recovery from lows on Wall Street and helped by better-than-expected Chinese manufacturing data.

London's blue-chip index closed 10.52 points, or 0.2 percent, higher on Tuesday at 5,681.61, to notch up an advance of 2 percent for January as a whole, its best performance for three months.

"Since bottoming at 5,075.20 on Nov. 25, the FTSE gone on a nice rally, but throughout the move the market has found time to top and retrace. This "backing and filling" action has helped form main bottoms at 5,328.70 and 5,583.50," said James A. Hyerczyk, analyst at Autochartist.

"Each time a bottom was formed, the trend remained up and the market followed through with a new high. This was a sign of value-based buying. In other words, traders were more interested in buying the breaks rather than chasing the rallies," Hyerczyk added.

U.S. blue chips closed down 0.2 percent on Tuesday, rallying from session lows seen around London's close, but still depressed by more weaker-than-expected U.S. economic reports that have surprised investors after a stream of positive data in recent months.

Asian stock markets also struggled on Wednesday as that weaker U.S. data dampened recent optimism that the world's largest economy may escape the gloom from the euro zone debt crisis, with the upbeat Chinese manufacturing surveys failing to break the cautious mood.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 percent in a volatile session, while Japan's Nikkei average bucked the regional trend to close up 0.1 percent.

China's factory sector expanded slightly in January, confounding expectations for a contraction and fuelling hopes the world's second-biggest economy will avoid a hard landing.

China's official PMI rose to 50.5 in January from 50.3 in December, beating market expectations of 49.5 as new orders rose to a three-month high. A level of 50 demarcates expansion from contraction.

And a similar HSBC survey showed the sector contracting the least in three months, further backing the view that a downturn in manufacturing may be bottoming out as the government adopts modest measures to support growth.

Brent crude rose above $111 a barrel, while London copper prices edged lower.

Euro zone debt concerns will likely continue to be a drag on overall sentiment, particularly as markets await a restructuring deal between Greece and its bond-holders -- which is seen as essential to avoid a messy default.

Greece must accelerate structural reforms and slow down on the deficit, the chief of the IMF's inspection team for Greece, Poul Thomsen was quoted as saying by a Greek newspaper on Wednesday.

On the domestic data front, data from lender Nationwide showed that British house prices unexpectedly fell for the second month in a row in January. January's Markit/CIPS British manufacturing PMI, due at 0928 GMT, is forecast to rise to a reading of 50.0 up from 49.6 in December.

Across the Atlantic, January's ADP U.S. national employment report will be eyed at 1315 GMT for clues as to Friday's key non-farm payrolls report.

Aside from that, January's U.S. ISM report and December U.S. construction spending data will both be unveiled at 1500 GMT.

No FTSE 100 companies will trade ex-dividend this Wednesday.

* GLOBAL MARKETS-Stocks mixed, focus on PMIs

* Nikkei edges up, poor earnings taken in stride

* Wall Street ends strong January on flat note

* FOREX-Dollar at 3-mth lows on yen, euro under pressure

* Brent rises above $111, Iran supply worries support

& PRECIOUS-Gold steady; U.S., Europe data eyed

* METALS-Copper steady, supported by firmer China PMI

Stocks to watch are:

BHP BILLITON

BHP Billiton will cut staff and reduce mine activity at its Nickel West unit in Australia in response to weak metals prices and the impact of a strong Australian dollar, the company said on Wednesday.

Also, BHP Billiton is to sell its 37 percent non-operated interest in Richards Bay Minerals to Rio Tinto, sealing its exit from the titanium minerals industry.

RIO TINTO

Rio Tinto's Energy Resources of Australia business expects uranium output in 2012 to recover to between 3,000 and 3,700 tonnes after mining interruptions drove it to a A$154 million ($164 million) loss in 2011.

EURASIAN NATURAL RESOURCES

The miner issues a fourth-quarter production report.

ICAP

The inter-dealer broker issues a trading update.

IMPERIAL TOBACCO GROUP

The tobacco firm issues a trading update.

JOHNSON MATTHEY

The metals firm issues a trading update.

PEARSON

U.S. peer McGraw-Hill is exploring the possibility of selling its $2.5 billion-plus education business, after its previously announced plan to split the division from its Standard & Poor's financial arm prompted interest from private equity groups, three people familiar with the situation tell The Financial Times.

HOME RETAIL GROUP.

The British retail firm's Argos chain is set to announce John Walden as chief executive on Wednesday, The Times said.

UNITED UTILITIES GROUP

The multi-utility issues a trading update.

BREWIN DOLPHIN HOLDINGS

The stockbroker issues a trading update.

SYNAIRGEN

The respiratory drug discovery firm posts first-half results.

TODAY'S UK PAPERS

> Financial Times

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