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SAO PAULO, June 1 (Reuters) - Brazil's stocks closed at their highest in nine months and the currency rallied on Monday as data showing improvement in U.S. and Chinese manufacturing fueled hopes the worst of the global recession is over.

The real (BRBY: Quote, Profile, Research) rallied around 1 percent to 1.954 per dollar, after strengthening to its highest level in eight months to 1.975 per dollar on Friday.

The benchmark Bovespa stock index .BVSP, which has risen for three straight months, advanced 2.42 percent to 54,486.29 points, the highest since Sept. 2, 2008. Gains in Brazil stocks tracked those on Wall Street with S&P 500 closing at its highest close in seven months.

"Stock markets are rising, including the Bovespa, and this is indicative of inflows into the country," said Jorge Knauer, head of foreign exchange at Banco Prosper.

Data on Monday showed the U.S. manufacturing sector contracted at a slower rate in May while China said manufacturing expanded for a third month also in May.

Hopes that major economies are rebounding and that demand for commodities will recover accordingly, boosted energy and metal prices and by extension commodity stocks.

The rally across stock markets came despite General Motors GM.N filing for bankruptcy on Monday, forcing the once symbol of American economic might into a new and uncertain era of government ownership.

"(...) The bankruptcy of the automaker was practically a given," said Itau in a note.