* MSCI world equity index up 0.1 percent at 323.11
* China data, strong Wall Street underpin mood
* Dollar, euro steady; bunds, Treasuries higher
By Natsuko Waki
LONDON, Dec 10 (Reuters) - World stocks rose on Friday as
investors grew more confident about the prospect for economic
recovery following robust U.S. and Chinese data, while
Treasuries stabilised after a sell-off earlier in the week.
Friday's data showed China's imports and exports were much
stronger than expected in November, providing robust numbers
that served as a reminder that Chinese demand was still growing
apace, boosting high-yielding currencies.
China's central bank raised lenders' required reserves by 50
basis points but left interest rates on hold, which also allayed
investors' concerns that aggressive policy tightening could slow
China's growth down too much. []
"In recent weeks people have been talking about the
possibility of a rate hike in China," said Niels Christensen,
currency strategist at Nordea in Copenhagen.
"Given they only announced a reserve requirement hike we are
seeing a bit of a relief rally as it has given a small boost to
risk appetite."
The MSCI world equity index <.MIWD00000PUS> rose 0.15
percent while the FTSEurofirst 300 index <> gained the
same amount. U.S. stock futures rose around a third of a percent
<SPc1>, pointing to a firmer open on Wall Street later.
On Thursday, the benchmark S&P 500 index <.SPX> hit a
two-year high with data showing first-time claims for jobless
benefits fell more than expected last week.
TREASURIES RECOVER
U.S. Treasuries edged up thanks to a strong auction of
30-year bonds that reflected investor appetite. Treasuries sold
off heavily earlier in the week on U.S President Barack Obama's
plans to extend low tax rates. However, those plans hit some
opposition ahead of a Senate vote next week.
Rising U.S. Treasury yields this week and growing inflation
concerns in developing economies -- together with the prospect
of tighter Chinese policy -- also encouraged investors to scale
back their already overstretched bets on emerging markets.
Emerging stocks <.MSCIEF> lost 0.1 percent, underperforming
their developed market counterparts.
"Data all suggest that further policy normalisation is
needed to keep China's economy on an even keel. So far, China
has made only modest moves in this direction," RBC said in a
note to clients.
"We expect to see more urgency from Beijing in the months
ahead as tackling inflation becomes a greater priority, with
both rate hikes and currency appreciation likely to be
employed."
Ten-year Treasuries <US10YT=RR> were up 8/32 in price to
yield 3.185 percent, off a six-month high of 3.330 percent
reached on Wednesday.
The sale of $13 billion of reopened 30-year U.S. bonds went
through at a yield below the level trading on the open market,
indicating investors bid aggressively for the debt, with strong
demand particularly from foreign buyers.
The dollar <.DXY> fell 0.1 percent against a basket of major
currencies, while the euro <EUR=> was steady at $1.3235 <EUR=>.
U.S. crude oil <CLc1> rose 0.4 percent to $88.75 a barrel.
The bund futures <FGBLc1> were steady.
