* MSCI world equity index up 0.7 pct at 276.24
* MSCI, FTSEurofirst 300 index at 10-month highs
* Oil near $74/bbl; govt bonds, yen slip
By Natsuko Waki
LONDON, Aug 24 (Reuters) - World stocks powered to a
10-month high on Monday while the yen fell after firmer U.S. and
euro zone data and reassuring comments from the world's key
central bankers spurred buying of risky assets.
Friday's survey showed sales of previously owned U.S. homes
jumped 7.2 percent in July to mark the fastest pace in nearly
two years. [] Monday's data showing a
bigger-than-expected rebound in euro zone industrial new orders
also aided sentiment.
Bernanke and other central bankers said at the annual
gathering in Jackson Hole on Friday the worst global recession
in 70 years was nearing a close, although they warned it would
be a long, slow climb back to normal growth. []
They also said it was too soon to withdraw trillions of
dollars in government and central bank support, which reassured
investors that the cost of borrowing is not rising just yet.
"There was a concern about China, but that dissipated and
U.S. data, especially housing, was upbeat, and Bernanke was
encouraging. Risk aversion is diminishing," said Philip Lawlor,
strategist at Nomura.
MSCI world equity index <.MIWD00000PUS> rose 0.7 percent to
reach levels not seen since October. The FTSEurofirst 300 index
<> rose half a percent.
U.S. stock futures were up 0.2 percent <SPc1>, pointing to a
firmer open on Wall Street later.
European credit default swap indexes fell sharply. The
Markit iTraxx Crossover index <ITEX05Y=GF>, made up of 44 mostly
"junk"-related credits, fell 21.75 points to 581.25 bps.
Tokyo stocks jumped 3.4 percent <>, their biggest
one-day gain in 3-1/2 months. However, trading was thin, with
turnover volume on the Tokyo stock exchange's first section at
its lowest level since July 28.
Investors were also hesitant about taking heavy positions
before the Aug. 30 general election where many expect the
opposition Democratic Party to win.
Emerging stocks <.MSCIEF> rose 1.75 percent. Shanghai stocks
<> rose 1.1 percent.
The Shanghai index posted its third weekly loss last week on
concerns that the country's banking regulator may tighten
capital rules. Jitters that the pace of growth might be slowing
or authorities might tighten the relatively loose monetary
policy also weighed on sentiment.
"China has been at the forefront of global recovery hopes...
We believe China will likely continue to help global demand by
running a much smaller trade deficit (in real terms) next year,"
Goldman Sachs said in a note to clients.
The bank estimates that China alone is expected to
contribute 1.7 percentage point of the 4 percent global real GDP
growth that we forecast currently in 2010.
"So any slight weakness in the China story will have
important ramifications for the rest of the world and
understandably raise concerns, as we have seen in recent weeks,"
it said.
U.S. crude oil <CLc1> rose 0.1 percent to $73.98 a barrel.
The September bund futures <FGBLc1> fell 10 ticks.
The dollar <.DXY> rose 0.15 percent against a basket of
major currencies. Against the yen it rose 0.4 percent to 94.77
<JPY=>.
(Additional reporting by Brian Gorman; Editing by Andy Bruce)
