European stocks rose to an eight-week high and U.S. equity-index futures erased declines as factory- output for the euro area exceeded initial forecasts and manufacturing in Japan andChina beat estimates. The yuan rose to a one-month high after manufacturing data exceeded economists’ forecasts. The currency touched 6.3461, its strongest level since May 29. The world’s second-largest economy grew 8.1 percent in the first quarter from a year earlier, compared with 8.9 percent in the preceding three months. To spur expansion, China announced its first cut in interest rates in more than three years on June 7. Italian and Spanish bonds advanced, while oil fell from a one-month high. Factory output in the euro region contracted less than initially estimated in June, London-based Markit Economics said today, after Japan’s Tankan index of large manufacturers’ sentiment and China’s Purchasing Managers’ Index exceeded economist estimates. In Japan, large manufacturers became less pessimistic as declines in commodity prices aided profitability, boosting the outlook for the world’s third-biggest economy. Yields on 10-year Treasury notes declined three basis points last week, or 0.03 percentage point, to 1.65 percent . Demand for new issues from the U.S. Treasury has accelerated as investors seek assets in the world’s reserve currency. The dollar has gained 5.6 percent against the euro and 2.1 percent against the British pound since the end of March as Europe’s sovereign debt crisis worsened. Oil declined in New York as euro-area unemployment reached the highest level on record. The jobless rate in the 17-nation area rose to 11.1 percent in May from 11 percent in April. hat’s the highest since the data series started in 1995. Crude for August delivery dropped as much as $1.44 to $83.52 a barrel. The euro stayed weaker against the yen and the dollar after a report showed euro-area unemployment reached the highest on record in May. The 17-nation shared currency was 0.3 percent weaker at 100.77 yen as of 10:06 a.m. London time, and traded 0.2 percent lower at $1.2648. Australia’s dollar traded 0.4 percent from an almost two-month high on bets the nation’s central bank will leave interest rates on hold tomorrow, preserving the yield advantage of the nation’s assets.