Stocks and Treasury yields rise as manufacturing grows in October

US stocks rose on Friday, with the S&P rising 0.3 percent, halting a two-day fall.

However, US Treasuries fell on Friday, the 10-year yield rising seven basis points to 2.62 percent on signs that the government shutdown in October failed to halt growth in US manufacturing activity.

The Institute for Supply Management’s manufacturing PMI rose to 56.4 last month, the highest since April 2011, from 56.2 in September. Markit's US manufacturing PMI for October also showed growth at 51.8, albeit falling from 52.8 in September.

Elsewhere in the world, Markit's UK manufacturing PMI fell slightly to 56.0 in October from 56.3 in September. However, it remained close to August's two-year peak of 57.1.

In Asia, manufacturing activity picked up pace in October. For China in particular, the official PMI rose to 51.4 from 51.1 in September while HSBC's PMI rose to 50.9 from 50.2.