GLOBAL MARKETS-Equities up, aided by U.S. manufacturing data; dollar higher

* U.S. stocks move further into record territory

* Nikkei hits 6-year closing high, Europe shares edge up

* U.S. dollar gains ground; U.S. 10-year Treasury falls

* Gold rebounds, but still on track for largest annual loss in 32 years

By Daniel Bases

NEW YORK, Dec 24 (Reuters) - U.S. shares edged higher into record territory in a holiday-shortened session on Tuesday, backed by stronger-than-expected manufacturing sector data, while Japanese stock prices hit a six-year closing high.

The U.S. dollar index, a measure of the greenback's value against a basket of six currencies, edged higher in thin trading.

In pre-Christmas trade, the Dow Jones industrial average was up 39.38 points, or 0.24 percent, at 16,333.99. The Standard & Poor's 500 Index was up 4.11 points, or 0.22 percent, at 1,832.10. The Nasdaq Composite Index was up 2.53 points, or 0.06 percent, at 4,151.43. U.S. stock trading was to end at 1 p.m. EST (Other OTC: ECPCY - news) .

U.S. durable goods orders for November surged 3.5 percent on rising demand for goods across a spectrum of industries, from aircraft to machinery and computers and electronic products.

Several European stock markets were closed on Tuesday for the holiday, but pan-European equity indexes such as the FTSEurofirst 300 and the STOXX 600 crept higher, extending their gains to five straight sessions.

That followed a rise in Asian stock markets, where Tokyo's Nikkei rose 0.1 percent to reach its highest closing level in six years.

The MSCI world equity index, which tracks shares in 45 countries, rose 0.04 percent to 403.04, just shy of a six-year high. It is up nearly 19 percent since the start of 2013, helped by injections of liquidity from the Japanese and U.S central banks and by signs the global economy is recovering from the 2008 credit crisis.

Those central bank programs have dented returns on bonds and cash, driving many investors to the better returns from stocks.

"Equities could well have another 15 percent return next year. It's sentiment-driven, there are few other places where you will get those sort of returns," said SteppenWolf Capital chief investment officer Phoebus Theologites.

The MSCI Emerging Markets equity index rose 0.3 percent, but is still down 5.6 percent for the year on concerns about central banks pulling back from their monetary stimulus.

GOLD SET FOR BIGGEST ANNUAL LOSS IN 32 YEARS

Investors remain wary about China's money markets after rates in the interbank market spiked to their highest since June in recent days. This was due partly to seasonal factors that increase banks' demand for cash near the end of each quarter.

The People's Bank of China (HKSE: 3988-OL.HK - news) injected funds through normal channels for the first time in three weeks, although traders warned that conditions remained tense.

"The relief is quite palpable after the cash injection by the PBOC today," said Jackson Wong, Tanrich Securities vice-president for equity sales.

Another area of concern was civil unrest in South Sudan, which kept Brent crude above $111 a barrel. U.S. oil futures rose 0.28 percent to $99.19 a barrel.

In currency markets, the euro fell versus the greenback, dropping 0.25 percent to $1.3666. The U.S. dollar index rose 0.17 percent to 80.578.

The improving global economic environment, coupled with a rally on world stock markets, has driven investors away from traditional safe-haven assets such as gold. For the year, gold is down 28 percent and set for its biggest annual decline in 32 years. However, the spot price recovered modestly in morning New York trade with a gain of $3.40 an ounce to $1202.20, up 0.28 percent on the day.

Benchmark 10-year U.S. Treasuries were down 12/32 of a point in price, the yield rising to 2.9719 percent, and closing in its highest levels in over 2-1/2 years. Trading was to end at 2 p.m. EST.

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