* World share index set for record 12th month of gains
* European stocks nudge to 5 1/2-month high
* MSCI Asia-Pacific index rises despite China data
* South Korea stocks up on thaw with Beijing
* China Oct factory growth slows more than forecast
* Dollar sags after Trump's former campaign manager indicted
* Brent crude hovers near two-year highs (Updates with U.S. trading, adds commentary, changes byline, previous dateline London)
By Sinead Carew
NEW YORK, Oct 31 (Reuters) - World stocks headed for a record 12th month of gains as Europe outshone Wall Street on Tuesday while the dollar edged up and U.S. Treasury yields were steady.
Wall Street had a choppy morning, while European stocks hit a 5 1/2-month high as data showed euro zone growth of 2.5 percent year-on-year and unemployment at its lowest since early 2009. Earnings from Oreo cookie maker Mondelez MDLZ.O boosted the S&P, while Pfizer 's PFE (NYSE:PFE).N report weighed. "We're still in the thick of earnings and have seen some high-profile companies driving the market a lot," said Randy Frederick, vice-president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin.
The Dow Jones Industrial Average .DJI rose 21.54 points, or 0.09 percent, to 23,370.28, the S&P 500 .SPX gained 2.72 points, or 0.11 percent, to 2,575.55 and the Nasdaq Composite .IXIC added 22.76 points, or 0.34 percent, to 6,721.72.
The dollar index .DXY , which measures the greenback against major currencies, was set for its biggest monthly rise since November 2016. rebounded slightly from its Monday decline after Federal investigators probing Russian interference in the 2016 U.S. election charged President Donald Trump's former campaign manager, Paul Manafort, and aide Rick Gates, with money laundering a lot of moving parts to the market this week," said Shaun Osborne, currency strategist at Scotia Bank in Toronto, citing central bank meetings, data and expectations Trump would announce his Federal Reserve chairperson choice.
Market participants were watching for "another shoe to drop" in the Russia probe, he said.
The dollar index .DXY rose 0.08 percent, with the euro EUR= down 0.13 percent to $1.1634.
U.S. Treasury prices were steady as investors braced for events that could prompt volatility. Wednesday's potential catalysts include the Treasury Department's refunding plans, the conclusion of the Federal Reserve's two-day policy meeting, and a possible tax bill introduction.
Benchmark 10-year notes US10YT=RR last fell 1/32 in price to yield 2.3739 percent, from 2.37 percent late on Monday. 30-year bond US30YT=RR last rose 4/32 in price to yield 2.8746 percent, from 2.88 percent late on Monday.
RECORD RUN
The MSCI's 47-country 'All World' index .MIWD00000PUS was set to top its 2003 run of 11 straight months of gains. It gained 0.09 percent Tuesday.
MSCI's index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ended up 0.4 percent. Strong gains in South Korea helped offset weakness in China and Hong Kong after disappointing industrial data from China.
South Korea's KOSPI .KS11 ended up 1 percent at a record high after Seoul and Beijing agreed to normalize relations that have been strained by a year-long standoff over the deployment of a U.S. anti-missile system in South Korea. prices steadied after a week of gains as the prospect of increasing U.S. exports dampened bullish sentiment that has driven Brent to more than two-year highs above $60 per barrel. crude CLcv1 fell 0.18 percent to $54.05 per barrel and Brent LCOcv1 was last at $60.46, down 0.21 percent on the day.
Spot gold XAU= dropped 0.5 percent to $1,270.02 an ounce. It was on track for its second straight monthly decline.
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http://reut.rs/2mcp7T1 GRAPHIC-Emerging markets in 2017
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