* Spain, Ireland, Belgium have solid debt sales
* Euro hits two-week high against the dollar
* U.S. stocks jump over 1 pct, oil up 2 pct
* Disappointing US, German data shrugged off (Updates with European markets close)
By Walter Brandimarte
NEW YORK, June 15 (Reuters) - The euro and U.S. stocks rallied more than 1 percent on Tuesday after successful government bond sales by some of the weakest members of the euro zone eased fears about Europe's debt problems.
Oil prices jumped nearly 2 percent, and European shares closed up for a fifth straight session as solid demand for Irish and Spanish government debt calmed investors' nerves, a day after Moody's downgraded Greece's credit rating to junk status.
Belgium also held a successful bond auction on Tuesday.
Yields paid at the auctions, however, were still sharply higher than a month ago, signaling difficult times ahead for debt-ridden European countries.
"The more the market starts to see that the credit markets are beginning to return to normalcy, the better it becomes for the euro," said Boris Schlossberg, director of currency research at GFT in New York.
The single European currency <EUR=> rose as high as $1.2344 on the electronic trading platform EBS, its strongest level since June 1. It remained up 0.9 percent at $1.2332 later.
Stocks rose across the board as investors felt it was safer to take on risk, despite some disappointing economic data in the United States and Germany.
The Dow Jones industrial average <
> gained 133.92 points, or 1.31 percent, to 10,324.81, while the Standard & Poor's 500 Index <.SPX> rose 15.51 points, or 1.42 percent, to 1,105.14. The Nasdaq Composite Index < > was up 41.60 points, or 1.85 percent, at 2,285.56.Industrial and technology sectors, which have high exposure to Europe, led the U.S. advance. Shares of plane maker Boeing Co <BA.N> and Caterpillar Inc <CAT.N>, the heavy equipment maker, both jumped about 3 percent.
The move is "all related to the euro. It determines how the stock market behaves," said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.
Semiconductor stocks helped boost the tech sector and lift the Nasdaq after TSMC <2330.TW> and UMC <2303.TW>, the world's two largest contract chip makers, forecast chip demand growing in the coming months amid an improving global economy and rising sales of new PCs and other consumer gadgets. [
]The Philadelphia semiconductor index <.SOXX> surged 3.9 percent.
Gains were just modestly trimmed after a report showed U.S. homebuilder sentiment fell in June by the sharpest amount since the height of the financial crisis following the expiration of a popular tax credit for home buyers. [
]In Europe, the FTSEurofirst 300 <
> index of top shares ended up 0.7 percent at 1,037.68 points, its highest close since May 13.Banks were among the biggest gainers <.SX7P>. BNP Paribas <BNPP.PA>, Banco Santander <SAN.MC>, Deutsche Bank <DBKGn.DE> and Societe Generale <SOGN.PA> rose between 2.1 and 4.2 percent.
European stocks largely ignored a slump in a closely watched indicator of German investor sentiment. The ZEW economic think-tank's indicator fell in June at its fastest rate since 2008, hit by concerns over the European debt woes. [
]"The market had got to a point where sentiment was weak and valuations were attractive," said Graham Secker, equity strategist at Morgan Stanley.
World stocks <.MIWD00000PUS> gained 1.0 percent, up for a sixth day, while emerging market stocks <.MSCIEF> climbed 0.8 percent, according to benchmark MSCI indexes.
Prices of U.S. Treasuries fell as demand for safe-haven assets decreased. Benchmark 10-year notes <US10YT=RR> were down 11/32 in price, with the yield at 3.3006 percent.
U.S. crude oil prices <CLc1> jumped 1.89 percent to $76.54 per barrel as investors seemed to be more confident about the prospects for a global economic recovery.
Despite the improved appetite for risk, gold prices remained on the rise. Spot gold prices <XAU=> traded 0.92 percent higher at $1,232.30 an ounce. (Editing by Leslie Adler)