REFILE-GLOBAL MARKETS-Stocks start Q2 positively after UBS loss

                                
 (refiles to correct day in first paragraph to Tuesday)
                                
 By Natsuko Waki
                                
 LONDON, April 1 (Reuters) - World stocks began the new
quarter on a positive note on Tuesday as revelations of huge
losses at major European banks suggested that financial firms
are coming clean on their woes.
                                
 UBS <UBSN.VX> wrote down an additional $19 billion from the
U.S. subprime mortgage crisis, causing a net loss of 12 billion
Swiss francs ($12.03 billion) in the first quarter, and said it
would seek 15 billion francs through a rights issue of shares.
                                
 Deutsche Bank <DBKGn.DE> unveiled 2.5 billion euros of
writedowns, equivalent to more than a third of its 2007 net
profit.
                                
 The eight-month-old credit crisis has hit the world's major
banks and threatened to damage corporate profits and derail
global economic growth. However, as more banks reveal the extent
of the damage, investors believe they can see the light at the
end of the tunnel.
                                
 Liquidity injections by the world's major central banks have
also helped to ease strains in the money markets, and this has
also calmed investor nerves.
                                
 "The one saving grace in this is that banks are acting
quickly to highlight their exposure. The quicker the bad news is
out in the open then the quicker we can start to repair the
problems," said Peter Dixon, economist at Commerzbank. "Every
bank which comes out with a big number nudges us that much
closer to the end of the write-off cycle."
                                
 The FTSEurofirst 300 index <.FTEU3> rose 1 percent, while
MSCI main world equity index <.MIWD00000PUS> was up nearly 0.1
percent on the day, having lost nearly 10 percent since the
start of the year.
                                
 UBS shares rose more than six percent, fooling many who had
thought before the market open that the shares would sink.
                                
 "They've separated all their toxic waste. If they're going
to finance that then everyone is saying this is the beginning of
the end, this is the last capital increase," a London-based
trader said.
                                
 Tokyo stocks rose more than one percent <.N225>, led by blue
chip exporters. The euro was down half a percent at $1.5692
<EUR=>, off its record high above $1.59 in March.
                                
 Sentiment also improved in the credit and emerging markets.
The iTraxx Crossover index <ITCRS5EA=GFI>, most-widely watched
indicator for European credit market sentiment, tightened 3
basis points to 570 bps. Emerging sovereign spreads <11EMJ>
tightened 3 bps. Emerging stocks <.MSCIEF>, however, were down
0.1 percent.
                                
 The June Bund future <FGBLM8> fell 30 ticks.
                                
 U.S. light crude <CLc1> was down 0.8 percent while gold
<XAU=> -- a traditional safe-haven asset -- fell to $892.50 an
ounce.
                                
 (Additional reporting by Rebekah Curtis and Amanda Cooper;
editing by David Stamp)