Trader's Highlight

DJI-NEW YORK, July 1 (Reuters) - U.S. stocks started July with a bang on Friday with Wall Street scoring its best week in two years on strong manufacturing data that eased concerns about slowing growth.

The data spurred the rally into a fifth straight day, even as continued light trading volume called into question the sustainability of the gains. Investors were growing more optimistic a day after a temporary resolution to Greece's debt situation. The S&P 500 .SPX climbed further above resistance at its 50-day moving average at 1,317, establishing another floor in the market after the benchmark index moved above a number of technical resistance levels.

The Dow Jones industrial average .DJI was up 168.43 points, or 1.36 percent, at 12,582.77. The Standard & Poor's 500 Index .SPX was up 19.03 points, or 1.44 percent, at 1,339.67. The Nasdaq Composite Index .IXIC was up 42.51 points, or 1.53 percent, at 2,816.03.

NYMEX-NEW YORK, July 1 (Reuters) - U.S. crude futures fell on Friday, ending three days of gains, as soft Chinese factory data sparked fresh demand worries, but a report of strong U.S. manufacturing activity underpinned the market.

A late flurry of short-covering ahead of the three-day July 4th U.S. holiday weekend also limited losses. Pre-holiday trading volume was light.

On the New York Mercantile Exchange, crude for August delivery CLQ1 settled at $94.94a barrel, falling 48 cents, or 0.5 percent, after trading between $93.45 to $95.39.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade closed higher on a short-covering rebound after Thursday's decline and ahead of long U.S. holiday weekend, traders said.

U.S. markets will be closed on Monday for the Independence Day holiday. Traders unwinding long corn/short soybean spreads in the wake of Thursday's USDA stocks and acreage reports.

Market also reacting to USDA's downward adjustment in U.S. 2011 soybean plantings, which would indicate tight domestic supplies during 2011/12. Soybeans Sc1 ended the week up 0.3 percent, following net declines in the previous three weeks.

FCPO-KUALA LUMPUR, July 1 (Reuters) - Malaysian palm oil futures hit their lowest in more than eight months on Friday, tracking falling overseas markets after key US data showed higher-than-expected crop prospects and stock levels.

The U.S. Agriculture Department's annual acreage and quarterly grain stocks reports showed ample supplies despite months of fretting over dwindling stockpiles that drove corn prices to record highs in recent weeks.

The soy market was pressured after the USDA reported U.S. June 1 soybean stocks at 619 million bushels, above the average trade estimate of 596 million bushels.

The benchmark September crude palm oil contract KPOc3 on Bursa Malaysia Derivatives ended 1.2 percent lower at 3,035 ringgit ($1,005.133) a tonne, after touching 3,031 ringgit, the lowest level since October 27.

Overall traded volume was 26,914 lots of 25 tonnes each, slightly above the usual 12,500 lots.

Palm oil prices, which had lost almost 20 percent in the first half of this year, are further pressured by expectations for stocks to soar above 2 million tonnes at a time when output is growing and overseas demand is likely to slow.

REGIONAL EQUITIES-BANGKOK, July 1 (Reuters) - Major Southeast Asian stock markets climbed on Friday, led by consumer and financial sectors as fears of a sovereign default by Greece faded and foreign investors returned to emerging Asian stocks.

Trading volume was light, however, with turnover falling well below the 30 day average across the region, albeit with positive foreign fund flows into several markets, including the Philipines .PSI.

Indonesia's main share index scaled an all-time high for the second session, climbing 1 percent. Indonesia is Asia's best performer this year, followed by the Philippines.

Singapore banks advanced after positive loan growth in May and cheered by new banking rules announced by the Monetary Authority of Singapore. They were more benign than expected and banks are likely to meet the requirements comfortably.

DBS Bank DBSM.SI, United Overseas Bank UOBH.SI and Oversea-Chinese Banking Corp OCBC.SI all advanced around 1 percent.