Trader's Highlight

DJI-NEW YORK, July 21 (Reuters) - U.S. stocks climbed on Thursday as signs of progress on the U.S. debt talks and concrete action from Europe on its own debt crisis heartened investors.

Unexpectedly robust earnings results from Morgan Stanley MS.N, whose shares rose 11 percent to $24.20, extended a relief rally in bank stocks after Goldman Sachs' dismal trading profits stunned the market earlier in the week.

The Dow Jones industrial average .DJI gained 152.50 points, or 1.21 percent, to 12,724.41. The Standard & Poor's 500 Index .SPX rose 17.96 points, or 1.35 percent, to 1,343.80. The Nasdaq Composite Index .IXIC advanced 20.20 points, or 0.72 percent, to 2,834.43.

NYMEX-NEW YORK, July 21 (Reuters) - U.S. crude oil futures rose for a third day on Thursday to close at a four-week high above $99 a barrel as mid-Atlantic region manufacturing rebounded in July, outweighing higher jobless claims last week.

In post-settlement trading, news of a concrete action from European Union leaders on how to help Greece's deal with its debt troubles helped push the stock market higher and in turn firmed up crude futures prices.

On the New York Mercantile Exchange, crude for September delivery CLU1 settled at $99.13 a barrel, up 73 cents, or 0.74 percent, the highest since June 14 close at $99.37 CLc1. Late profit-taking trimmed gain.

CBOT-SOYBEANS-Soybean futures on the Chicago Board of Trade ended firm, buoyed by short-covering as traders unwound long corn/short soybean spreads, brokers said.

Soybeans also drew support from a three-day decline in the U.S. dollar index .DXY, and from strength in crude oil.

FCPO-KUALA LUMPUR, Jul 21 (Reuters) - Malaysian palm oil futures fell on Thursday after hitting a one-month high earlier in the session as weak economic Chinese data erased gains made on higher export hopes.

Commodity markets come under pressure after weak economic data from the world's top commodities buyer China signalled some weaker demand in the months to come.

The HSBC flash PMI, the earliest available indicator of industrial activity in China fell to 48.9 in July, its lowest since March 2009, as monetary policy tightening and slack global demand weighed on the economy

The benchmark October crude palm oil contract KPOc3 on Bursa Malaysia Derivatives touched one-month highs of 3,164 ringgit before paring some gains to end 23 ringgit lower at 3,130 ringgit ($1,044.186).

Overall traded volume stood at 22,636 lots of 25 tonnes each, below the usual 25,000 lots.

REGIONAL EQUITIES-SINGAPORE, July 21 (Reuters) - Indonesian stocks hit a record high and Thai stocks touched a three-month peak on Thursday as foreigners continued to buy Bangkok shares, helping Southeast Asian stocks outperform other Asian bourses, which were hit by weak Chinese manufacturing data.

Trading volume in most of the region exceeded the 30-day moving average, indicating investors' strong appetite and suggesting further near-term gains.

But valuations may cause performance to diverge in the region, some analysts said.

Singapore shares turned higher to touch a two-week high on easing concerns about Greece's debt problems after news about a Franco-German accord on the crisis.