ADR Report-Upbeat global manufacturing data lifts foreign stocks

By Rodrigo Campos

NEW YORK, July 1 (Reuters) - Overseas shares traded in the United States rose on Wednesday, a day after wrapping up their best quarter in almost a decade, as upbeat manufacturing data pointed to an upturn in the global economy.

In the latest readings on the global economy, surveys from Europe showed manufacturing was shrinking less than initially thought and in China's case, growing modestly. For details see [ID:nPEK138883]

A sharp decline in the U.S. dollar underpinned the rise in foreign stocks, as a weaker greenback raises investor appetite in offshore shares priced in the U.S. currency.

The dollar extended its losses after Reuters reported China asked to discuss proposals for a new global reserve currency at the upcoming G8 meeting in Italy. For details see [ID:nLAG003567]

The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) .BKADR gained 1.35 percent while the U.S. benchmark S&P 500 index .SPX edged up 0.44 percent. The blue-chip Dow Jones industrial average .DJI rose 0.7 percent.

Gains were broad among sectors and regions. Among the session's winners were ADRs of Rotterdam-based Unilever NV (UN.N), up 2.8 percent at $24.86. Its U.S. competitor General Mills (GIS.N) on Wednesday raised its earnings forecast. [ID:nBNG512328]

A leading index of European ADRs .BKEUR gained 1.4 percent.

A gauge of Korean ADRs .BKKR jumped 5.1 percent after positive South Korean export data fueled a rally in the local stock market, and the Bank of New York Mellon index of leading Asian ADRs .BKAS added 1.3 percent.

ADRs of KB Financial (KB.N) soared 10.3 percent to $36.75, while telecom services company KT Corp (KTC.N) rose 5.6 percent to $15.16.

In Latin America, ADRs of state-controlled Brazilian energy company Petrobras (PBR.N) fell 1.2 percent to $40.48 after crude futures CLc1 shed early gains to settle down 0.8 percent at $69.31 per barrel.

The Bank of New York Mellon index of leading Latin American ADRs .BKLA rose 1 percent. (Editing by Jan Paschal)