June 5 (Bloomberg) -- Most U.S. stocks rose as an unexpected increase in American service-industry growth eased concern the largest economy was slowing. The yen fell as Japan's finance minister said he told Group of Seven officials he's concerned about the currency's rise. The Standard & Poor's 500 Index advanced 0.1 percent to 1,279.18 at 10:58 a.m. in New York after earlier dipping to its lowest level since January. About three stocks gained for every two that fell on U.S. exchanges. The Stoxx Europe 600 Index increased 0.4 percent. Treasury yields rose for a second day on speculation their slide to record lows last week won't be sustained. The euro depreciated 0.3 percent to $1.2456 while the yen weakened against 14 of 16 major peers. Cocoa, natural gas and silver led gains in commodities. U.S. equities reversed earlier losses as the Institute for Supply Management's index of non-manufacturing businesses, which covers about 90 percent of the economy, increased to 53.7, topping the median projection of economists for a reading of 53.4. Finance ministers and central bank governors from the world's leading economies agreed to coordinate their response to Europe's financial crisis on a G7 conference call that dealt with Spain and Greece. "I'd be a buyer of stocks," John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York, said in a telephone interview. His firm oversees $205 billion. "The U.S. economy is doing OK. Obviously there are lots of things that could go wrong. We're going to have to see more agreements in Europe. Yet valuation is attractive, the market is cheap." Valuation Watch The S&P 500 reversed losses yesterday as the cheapest price-to-earnings valuation in six months overshadowed a drop in factory orders. The index started the week trading at 12.9 times its companies' reported earnings, the lowest valuation since November. It dropped 9.9 percent from a four-year high on April through last week as U.S. economic data trailed estimates and concern grew about Greece's future in the euro and Spain's deteriorating national finances. Financial, commodity and technology shares, the groups that led the S&P 500's retreat since April, rose the most among 10 industries today. JPMorgan Chase & Co., Bank of America Corp. and Hewlett-Packard Co. rose more than 2.6 percent for the biggest gains in the Dow Jones Industrial Average. The euro slid against 12 of 16 major peers, with the currencies of Brazil and South Africa rallying more than 1 percent. The Dollar Index, which tracks the U.S. currency against those of six trading partners, climbed 0.3 percent, rising for the first time in three days. A Markit Economics gauge of the euro area's manufacturing and services industries shrank the most in almost three years and Spain's budget minister called for outside help for banks as Europe's debt crisis remained in focus. European Yields The yield on the two-year German note hovered near zero after falling to minus 0.012 percent at the end of last week. The yield on the Italian 10-year bond declined three basis points to 5.64 percent, erasing an earlier increase. Ten-year U.S. Treasury note rates rose four basis points to 1.56 percent. The Stoxx 600 rebounded from its lowest level since Dec. 19. U.K. markets are closed for second day of holidays. The MSCI Emerging Markets Index rose 0.8 percent, rebounding from a six-month low. Benchmark gauges in South Korea, Indonesia and Taiwan climbed more than 1 percent. The Shanghai Composite index gained 0.2 percent, while Russia's Micex Index fell 0.7 percent. --With assistance from John Buckley in Amsterdam Mariko Ishikawa in Tokyo, Sarah McDonald in Sydney and Keith Jenkins, Daniel Tilles, John Deane, Will Hadfield and Stephen Kirkland in London. Editors: Michael P. Regan, Nick Baker To contact the reporters on this story: Michael P. Regan in New York at mregan12@bloomberg.net; Rita Nazareth in New York at rnazareth@bloomberg.net To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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