Encouraging data helps Britain's FTSE bounce back

* Blue-chip FTSE 100 index rises 1.0 pct

* Start of new quarter fuels fresh buying

* ASOS (LSE: ASC.L - news) , Evraz (LSE: EVR.L - news) rise after updates

By Atul Prakash

LONDON, April 1 (Reuters) - Britain's top share index bounced back on Wednesday, with data showing the country's manufacturing sector grew at the fastest pace in eight months prompting investors to buy equities on the first trading day of the quarter.

Online fashion retailer ASOS surged after saying its strategy of cutting prices in international markets was building momentum.

The blue-chip FTSE 100 was up 1 percent at 6,843.19 points at 1046 GMT, after a 1.7 percent slide the previous day that trimmed the index's first quarter gains to 3.2 percent.

The index extended gains after financial data company Markit said its monthly manufacturing purchasing managers' index (PMI) rose to 54.4 in March from 54.0 the month before, the highest since July 2014 and ahead of forecast for a rise to 54.3.

"Encouraging UK PMI data, alongside positive economic news out of the euro zone, has helped the market. It's supportive of the view that the economic recovery in the United Kingdom continues," Robert Parkes, equity strategist at HSBC Global Research, said.

Another survey showed manufacturing activity in the euro zone accelerated faster than thought last month.

Among sharp movers, ASOS rose 5 percent after saying it was confident of hitting profit expectations for its 2014/15 financial year. Although ASOS posted a 10 percent fall in first-half profit, it exceeded forecasts.

"The online fashion retailer has implemented 'zonal pricing' which is slowly increasing international sales," Augustin Eden, analyst at Accendo Markets, said.

"(Labour leader) Ed Miliband has declared war on zero-hours contracts which are part of what keeps costs so low for firms like ASOS. Massive investment in its international operations will be an effective hedge against a less than satisfactory election result," he said, referring to a contract under which an employer is not obliged to offer any minimum working hours.

Over 100 British company bosses publicly backed Prime Minister David Cameron's Conservative-led government on Wednesday and warned a change of course for Britain's $2.8 trillion economy under a Labour government after a May 7 election would put the recovery at risk.

Among sectoral gainers, the banking index, which fell 1.7 percent in the previous session, rose 1.8 percent on expectations that an economic recovery will help cyclicals such as banks. Barclays (LSE: BARC.L - news) rose 3.7 percent, while Lloyds gained 2.4 percent.

Among mids-caps, Russia's Evraz, rose 6.5 percent after saying it would return up to $375 million to its shareholders as part of a tender offer, after its 2014 core earnings rose on a weaker rouble. (Additional reporting by Francesco Canepa; Editing by Alison Williams)