* Global stocks up on Japan, Wells Fargo, US data
* Patchy signs of economic recovery trigger oil gains
* Dollar up versus basket of currencies, down against euro
By Sebastian Tong
LONDON, April 9 (Reuters) - Global equities rose on Thursday
in light trading ahead of the Easter holiday weekend as
investors sought further signs of optimism in the financial
crisis that has hit economies from Australia to Ireland.
Japan's larger-than-expected $154 billion plan to jump-start
its slowing economy underpinned appetite for equities while
better-than-expected figures from the U.S. on its trade deficit
and new claims from jobless U.S. workers provided a midday
boost. [] []
An announcement by U.S. lender Wells Fargo <WFC.N> of record
first quarter earnings also helped steady sentiment.
The MSCI's all-country world equities index <.MIWD00000PUS>
rose more than 1 percent higher by 1240 GMT, staying on track
for its first weekly loss in five weeks.
The pan-European FTSEurofirst 300 index <> was up 1
percent, shrugging off the Bank of England's decision to leave
interest rates unchanged at a record low of 0.5 percent but
underperforming Asian shares <.MIWD00000PUS>which rose some 3
percent, back towards a six-month high.
Emerging stocks <.MSCIEF> remained outperformers, rising
over 2.5 percent towards a six-month high hit earlier this week.
"With the earnings season yet to enter full swing, the
market is still willing to give risk appetite the benefit of the
doubt," said Geoffrey Yu, currency strategist at UBS.
Despite the better-than-expected Wells Fargo earnings
[], banks from New York to Tokyo face asset sales,
capital raising and government takeover as the financial crisis
set off by the U.S. subprime mortgage market continues to take
its toll.
On Thursday, Germany offered to take over stricken
Munich-based lender Hypo Real Estate. This comes a day after
Ireland said it may end up with majority stakes in its banks if
their property losses require further capital injection.
appetite is driving investors to seize on opportunities to sell
gold to buy other assets such as shares.
SHORT-TERM POSITIVE
Recent economic data remains weak. Canada and Australia
posted their highest jobless rates in years while German
industrial production fell for its six month in a row.
[]
On Wednesday, the U.S. Federal Reserve lowered its GDP
growth projections.
Against this gloomy backdrop, there are incipient signs of
economic recovery.
Japanese machinery orders, seen as a leading indicator of
corporate spending, unexpectedly rose in February while a pair
of recent business surveys suggested a rebound on the horizon
for China. [] []
"Together with increasing signs of production stabilisation
and inventory adjustment, short-term growth momentum should
remain positive," said Goldman Sachs in a client note.
Indicators of global economic recovery -- however patchy --
were enough to trigger gains in oil.
U.S. light crude <CLc1> rose nearly $2 higher to trade at
more than $51 a barrel.
The dollar was flat against a basket of currencies <.DXY>
following the release of figures showing a shrinking of the U.S.
trade deficit to its smallest since November 1999.
The greenback recovered from session lows against the euro
<EUR=> after European Central Bank President Jean-Claude Trichet
said the central bank had leeway to cut its main interest rate.
[]
Gold slipped from a high of $886 per ounce to be bid at
around $877 with improved risk appetite seen spurring investors
to sell the metal to buy equities.
Emerging sovereign spreads <11EMJ> narrowed 11 basis points
to trade at 564 bps above U.S. Treasuries.
(Additional reporting by Joanne Pearson and Naomi Tajitsu;
Editing by Victoria Main)
