GLOBAL MARKETS-China data, Fed talk boost stocks, commodities
* Chinese factory output surges to 19-month high
* Fed governors reinforce bets on low U.S. interest rates
* Dollar rebounds after falling to 15-month lows
* Gold, oil prices up; U.S. bond market closed for holiday (Updates with U.S. markets, changes byline, dateline, previous LONDON)
NEW YORK, Nov 11 (Reuters) - Global stocks and commodity prices rose on Wednesday after news of a jump in Chinese factory output and dovish comments by U.S. Federal Reserve officials encouraged investors to take on risk.
U.S. crude oil prices rose while gold tested new highs near $1,120 per ounce as the U.S. dollar initially slid to 15-month lows. The greenback erased its losses later, however, after failing to break below key technical levels.
U.S. bond markets did not operate in observance of Veterans Day.
A string of speeches on Tuesday by officials of the Fed -- the U.S. central bank -- had reinforced the view that U.S. interest rates will remain near zero for the foreseeable future, increasing the appeal of higher-yielding assets. For more see [ID:nN10315173].
Optimism about a global economic recovery grew after China said industrial production jumped 16.1 percent in the year to October, the fastest pace since March 2008. [ID:nPEK212006]
"In addition to the economic data showing that things are getting better you also have seemingly all the policy makers in the world on a coordinated basis trying to keep this recovery going," said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago.
MSCI's all-country world stock index .MIWD00000PUS rose nearly 0.5 percent in early afternoon trading.
The Dow Jones industrial average .DJI gained 42.25 points, or 0.41 percent, at 10,289.22, while The Standard & Poor's 500 Index .SPX rose 5.55 points, or 0.51 percent, at 1,098.56. The Nasdaq Composite Index .IXIC was up 13.69 points, or 0.64 percent, at 2,164.77.
The FTSEurofirst 300 .FTEU3 index of top European shares rose 0.4 percent to its highest close since Oct. 22, supported by bank shares.
Emerging market stocks were 0.9 percent higher, according to a benchmark MSCI index .MSCIEF.
Commodity prices also rose, with U.S. crude oil prices CLc1 up 0.37 percent at $79.34 per barrel. Spot gold prices XAU= gained 0.88 percent to $1,114.80 an ounce, after hitting a high of $1,117.95. Continued...
