Trader's Highlight

DJI-NEW YORK, Jan 3 (Reuters) - Wall Street stocks surged more than 1 percent as the new trading year kicked off on Monday and the rally of late 2010 resumed on encouraging signs about the economic outlook and a seasonal effect.

Stocks got a boost from the "January effect" when fund managers are no longer engaged in year-end window dressing and instead focus on stocks they find attractive.

The Nasdaq 100 <.NDX> hit a 10-year high, driven largely by gains in Apple Inc , which hit an all-time high at $330.20 and is up 56 percent since the end of 2009. The Nasdaq 100's level is still half of the all-time high of 2000.

The Dow Jones industrial average <.DJI> was up 121.81 points, or 1.05 percent, at 11,699.32. The Standard & Poor's 500 Index <.SPX> was up 16.78 points, or 1.33 percent, at 1,274.42, hitting fresh two-year highs. The Nasdaq Composite Index <.IXIC> was up 42.29 points, or 1.59 percent, at 2,695.16.

NYMEX-NEW YORK, Jan 3 (Reuters) - U.S. crude oil futures ended at a 27-month high on Monday, the first trading session of the year, as positive U.S. and European economic data and forecasts for colder weather spurred hopes for greater demand for oil.

U.S. economic reports showed manufacturing grew at its fastest pace in seven months in December and construction spending hit a five-month peak in November

On the New York Mercantile Exchange, crude for February delivery settled up 17cents at $91.55 a barrel, the highest close since Oct. 3, 2008, when front-month U.S. crude ended at $93.88.

CBOT-CHICAGO, Jan 3 (Reuters) - Wheat futures on the Chicago Board of Trade closed higher on Monday, as heavy rain in Australia further threatened its wheat crop and disrupted grain movement.

In addition, a lack of snow cover in the southern U.S. Plains has made frigid temperatures more worrisome for wheat. Signs of strong export demand also underpinned prices.

CBOT-SOYBEANS - January down 23-1/2 cents at $13.70-1/4 per bushel. Funds sold an estimated net 6,000 contracts.

CBOT-SOYOIL - January down 0.65 cent at 57.09 cents per lb. Following soy lower.

FCPO-KUALA LUMPUR, Jan 3 (Reuters) - Malaysian crude palm oil hit a new 33-month high on Monday as robust demand chases tightening supplies and investors continue to place bets on commodities after a strong performance last year.

Palm oil prices, which rose 42.2 percent in 2010, are underpinned by heavy rains lashing oil palm estates in Malaysia and Indonesia and dry weather in soyoil-producing Argentina.

Traders said demand for palm oil will lift prices as China stocks up for the Lunar New year holidays in early February and other Asian countries need to top up their inventories.

The benchmark March 2011 crude palm oil contract on Bursa Malaysia Derivatives rose almost 2 percent to 3,861 ringgit ($1,249) per tonne, a level unseen since March 2008, before settled at 3,852 ringgit ($1,249.230).

Overall traded volumes almost doubled at 14,768 lots of 25 tonnes each, compared with the usual 15,000 lots after the long-weekend.

REGIONAL EQUITIES-COLOMBO, Jan 3 (Reuters) - All southeast Asian stock markets gained on Monday, the first trading day of 2011, with Malaysia hitting a record high and Singapore rising to a near eight-week high after posting strong economic growth data for 2010.

Malaysia <.KLSE> gained 1 percent to an all-time high close of 1,533.42 points, surpassing its previous record high hit on Nov. 10. The trading share volume in Kuala Lumpur was more than its 90-day average volume.

Singapore <.FTSTI> outperformed regional markets with 1.4 percent gain, its highest percentage and points rise since Nov. 1, after its government posted Asia's fastest economic growth of 14.7 percent for 2010.

In Singapore, top lender DBS Group rose 1.3 percent, while United Overseas Bank added 2 percent on the day.

Oversea-Chinese Banking Corp gained 1.4 percent after it said the merger of its two licensed bank subsidiaries in Indonesia -- Bank OCBC Indonesia and Bank OCBC NISP -- had taken effect from Jan. 1.