* U.S. stocks up more than 1 pct
* Dollar rises
* Oil erases earlier losses to trade flat
(Updates with new quote, European shares closing up)
By Caroline Valetkevitch
NEW YORK, Sept 2 (Reuters) - Global stock indexes rose on
Wednesday, drawing support from reports of brokerage measures in
China to invigorate the country's battered markets, while oil
recovered from earlier losses to trade near flat.
Major U.S. stock indexes gained about 1 percent, also
boosted by upbeat data on U.S. productivity.
European equities .FTEU3 ended up 0.2 percent, building on
early relief after Chinese stocks managed to bounce from steep
losses before closing slightly lower.
Nine Chinese brokerages pledged to buy more than 30 billion
yuan of shares, according to the China Securities Journal. That
eased investor fears that Beijing may be intensifying a trading
crackdown.
The news stabilized global markets and soothed concerns that
slowing growth in China will hurt the global economy.
"We expect some more volatility going forward, but we see
the recent selloff as a correction and not the start of a bear
market," Philippe Gijsels, head of research at BNP Paribas (PARIS:BNPP)
Fortis Global Markets, said.
"Possible actions by some central banks such as China doing
more to stimulate its economy, the European Central Bank
extending its bond-buying program and the Fed delaying an
interest rate hike are likely to support the market."
The Dow Jones industrial average .DJI rose 207.18 points,
or 1.29 percent, to 16,265.53, the S&P 500 .SPX gained 21.81
points, or 1.14 percent, to 1,935.66 and the Nasdaq Composite
.IXIC added 68.66 points, or 1.48 percent, to 4,704.77.
The U.S. market is still down for the year following the
recent selloff.
MSCI's all-country stock index .MIWD00000PUS rose 0.4
percent but is down 7.0 percent for the year-to-date.
U.S. data showed nonfarm productivity increased at its
strongest pace in 1-1/2 years in the second quarter, keeping
wage inflation subdued for now.
Oil prices were last near unchanged, erasing earlier losses
in a volatile session. Data from the Energy Information
Association showed U.S. crude stockpiles rose unexpectedly last
week.
Brent and U.S. crude prices dropped sharply on Tuesday,
ending a 25 percent three-session surge, the largest such gain
since 1990.
"A rise of around 25 percent in three consecutive days was
not going to be sustained," BNP Paribas oil analyst Harry
Tchilinguirian said. "The underlying fundamentals are bearish."
Brent crude LCOc1 for October was down 1 cent at $49.55 a
barrel. U.S. crude CLc1 for October was flat at $45.41.
The dollar rose as global stock markets steadied, and as
U.S. hiring data encouraged speculation that Federal Reserve
policymakers will raise interest rates later this month.
The dollar index .DXY , a measure of six major currencies
valued against the greenback, was last up 0.40 percent and had
added to gains when payrolls processor ADP reported that U.S.
private payrolls increased by 190,000 last month.
The more comprehensive non-farm payrolls report is due on
Friday, the last monthly report before the Fed meets on Sept.
16-17.
U.S. Treasuries prices slipped after the fresh efforts in
China to steady financial markets mitigated concerns about the
world's second-biggest economy and reduced demand for safe-haven
U.S. government debt.
Benchmark 10-year Treasuries US10YT=RR were last down 3/32
in price to yield 2.18 percent, from a yield of 2.17 percent
late on Tuesday. U.S. 30-year Treasuries US30YT=RR were last
down 11/32 to yield 2.95 percent, from a yield of 2.93 percent
late on Tuesday.