By Stuart Wallace April 1 (Bloomberg) -- Stocks rallied, driving the Stoxx Europe 600 Index to an 18-month high, and commodities jumped as manufacturing expanded in China, Japan and the U.K. The Swiss franc appreciated to a record against the euro for a second day. The Stoxx Europe 600 rose 1.1 percent to 266.23 at 10:29 a.m. in London, the highest since September 2008. Futures on the Standard & Poor’s 500 Index added 0.5 percent and the MSCI Emerging Markets Index gained 1.3 percent, for its longest rally in a year. Copper and platinum reached their highest levels since August 2008 and oil climbed to a 17-month record. The Swiss franc strengthened as much as 0.4 percent. China’s manufacturing accelerated, while a Bank of Japan survey showed confidence among the nation’s largest manufacturers rose for a fourth quarter. An index of U.K. output rose to its highest point since 1994, and European factory production increased at a faster pace than initially estimated in March. The Institute for Supply Management may say its U.S. factory index rose last month, while claims for jobless benefits probably decreased. “The strength of the economic recovery was underestimated and the positive dynamic is still under way,” said Rudolf Buxtorf, who helps manage about $500 million at RBS Coutts Bank in Zurich. “It’s too early to be euphoric but the positives have moved to the foreground.” Rio, Richemont The Stoxx Europe 600 and the MSCI Asia Pacific Index advanced as BHP Billiton Ltd., the world’s largest mining company, gained 1.7 percent in London after metals climbed. Rio Tinto Group, the third-biggest mining company, rose 2.2 percent. Cie. Financiere Richemont SA, the world’s largest jewelry maker, increased 2 percent in Zurich after agreeing to buy the remainder of Net-a-Porter LLC, valuing the online fashion retailer at 350 million pounds ($533 million). Mergers and acquisitions gained momentum in the first quarter, with more than 2,034 cross-border transactions and 10 hostile takeovers signaling a recovery from the worst deal market in six years, according to data compiled by Bloomberg. S&P 500 futures advanced before the claims report, due at 8:30 a.m. in New York. Tomorrow, when many U.S. and world markets are closed for holidays, the government will report March payrolls. The median of economists’ forecasts in a Bloomberg survey is for an increase of 190,000, the biggest in three years. China, Romania The MSCI emerging markets index rose 1.2 percent to the highest level in almost three months, and China’s Shanghai Composite Index advanced by the same amount. Romania’s BET Index jumped 1.9 percent, extending last quarter’s 30 percent rally. Stocks in the smallest developing markets, including Romania, Ukraine and Nigeria, beat their larger peers by the most in almost five years last quarter as the MSCI Frontier Markets Index added 11 percent. Russia’s Micex index climbed 1.3 percent, advancing for a sixth day. Copper for delivery in three months rose 1.5 percent to $7,910 a metric ton on the London Metal Exchange, after earlier reaching $7,938. Aluminum, nickel and zinc also gained. Platinum for immediate delivery jumped 1.1 percent to $1,662.18 an ounce, and earlier touched $1,663.50. Crude oil for May delivery added 52 cents to $84.28 a barrel in New York, after earlier reaching $84.62, the most since October 2008. ‘Robust’ Expansion “Robust economic growth among emerging economies has supported commodity prices,” said Tobias Merath, head of commodity research at Credit Suisse AG in Zurich. “Now the U.S. and Europe are getting increasingly important, as demand there has started to pick up.” The yield on the 10-year Treasury note rose 1 basis point to 3.84 percent, climbing for the first time in three days, as analysts said the U.S. will announce plans to auction $82.2 billion of securities next week. The sales will include a record-tying $40 billion in three- year notes, based on a Bloomberg survey of nine primary dealers, companies required to bid at auctions. They will also consist of $8.2 billion in 10-year Treasury Inflation Protected Securities, $21 billion in 10-year notes and $13 billion in 30-year bonds, the dealers forecast. The auctions will take place over four days, starting with the TIPS on April 5. The Swiss franc strengthened beyond 1.42 for the first time, after a report showed the nation’s manufacturing expanded at the fastest pace in more than three years in March. The dollar traded near a one-week low, at $1.35 per euro, and the yen was close to the lowest level in eight weeks compared with the euro, at 126.15. To contact the reporter for this story: Stuart Wallace in London at swallace6@bloomberg.net

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