* World stocks at new 9-month high
* U.S. dollar slides to 7-week low on risk appetite
* U.S. Treasuries pulled lower by debt supply worries
* Oil rises after hitting highest since July 2 (Updates with U.S. markets activity)
By Herbert Lash
NEW YORK, July 27 (Reuters) - U.S. stocks rallied near the close to join global stocks at a new nine month high, while crude oil also edged up on Monday, helped by U.S. housing data which fuelled hopes that the U.S. economy is pulling out of recession.
The U.S. dollar fell to its lowest level in more than seven weeks against the euro as the jump in U.S. new home sales bolstered the market's appetite for riskier assets and dimmed the greenback's safe-haven appeal. []
Oil jumped at one point to the highest in more than three weeks at almost $69 a barrel on hopes of a recovery that would boost fuel demand. []
Japanese stocks marked their ninth-straight gain in their longest winning streak in 21 years, [] while energy and mining stocks helped Britain's top share index to rise for a record-equaling 11th straight session.
Global stocks, as measured by MSCI's all country world index <.MIWD00000PUS>, rose 0.6 percent to a new nine month high. Investors believe that earnings will continue to be mostly positive, leading European shares to their highest close in more than eight months. []
The U.S. new home sales data underpinned financial stocks, the session's strongest sector, and prompted investors to snap up the shares of several regional banks that had been among the worst hit by credit losses tied to a weak housing market.
Regions Financial Corp <RF.N> jumped 8.9 percent and Zions Bancorporation <ZION.O> soared 13 percent. The S&P financial index <.GSPF> rose 1.5 percent.
Still, overall market gains were modest.
"There was a little more willingness to bid stocks up two weeks ago on positive earnings surprises," said Wedbush Morgan's Michael James. "You're seeing people less willing to do that now, given the move the market has had in the last two weeks."
The Dow Jones industrial average <> rose 15.27 points, or 0.17 percent, to 9,108.51. The Standard & Poor's 500 Index <.SPX> gained 2.92 points, or 0.30 percent, to 982.18. The Nasdaq Composite Index <> added 1.93 points, or 0.10 percent, to 1,967.89.
The FTSEurofirst 300 <> index of top European shares rose 0.5 percent to a provisional close of 911.58 points. The index has gained in 10 of the last 11 sessions.
"The U.S. new home sales data was very positive and we believe that we're seeing a base being formed in the U.S. residential market," said Bob Parker, vice president of asset management at Credit Suisse.
"And it's important because we shouldn't forget that the U.S. housing market was one of the causes of the credit crunch."
Sales of new single-family U.S. homes rose more than expected in June, while the inventory of homes for sale fell to a more than 11-year low, government data showed.[]
Copper prices surged to 10-month highs on increasing optimism about growth and demand from China, [] as highlighted in Chinese data for June imports. []
Copper, which is used in power and construction, has gained more than 80 percent since the start of the year, with much of that gain due to Chinese buying. []
"It's the China factor, the housing numbers, and a basic investor need to begin pricing in recovery," said Michael Gross, futures analyst with Optionsellers.com in Tampa, Florida. "They're pricing where copper prices should be when the economy recovers."
Copper for September delivery <HGU9> in New York ended up 2.30 cents at $2.5450 a pound.
The euro rose to $1.4299, its highest since June 3. It was last at $1.4237 <EUR=>, up 0.2 percent from late Friday.
The U.S. dollar was up 0.5 percent at 95.24 yen <JPY=>, after hitting a session peak of 95.38 yen, the highest in almost three weeks.
The dollar has come under pressure in recent sessions as upbeat economic data and largely positive results on the U.S. corporate earnings front fueled expectations that the global economy was on the mend.
U.S. crude <CLc1> traded up 33 cents to settle at $68.38 a barrel after earlier hitting $68.99, the highest since July 2. The gains came as gasoline and heating oil futures rose for the 10th session in a row.
In London, Brent crude <LCOc1> gained 49 cents to settle at $70.81 a barrel.
New York gold futures finished with modest gains after hitting a six-week high. The August contract <GCQ9> closed with small $0.40 gains at $953.50 an ounce.
Debt markets were weaker though, pushing benchmark U.S. Treasury yields to the highest in more than a month as investors fretted over the impact of a record-large amount of new government debt supply this week. []
The Treasury will auction $115 billion of notes this week, beginning with $6 billion in Treasury Inflation-Protected 20-year debt, which generated a fair response from investors.
Benchmark 10-year note <US10YT=RR> prices were last seen 16/32 lower in price to yield 3.73 percent, the highest since late June. Thirty-year bond <US30YT=RR> prices declined 1-6/32 in price to yield 4.62 percent.
Asian stocks rose for the ninth day in 10, and Japan's Nikkei share average <> rose 1.45 percent to a nine-month high. MSCI's index of Asia Pacific stocks outside Japan <.MIAPJ0000PUS> rose 1.6 percent. (Reporting by Ryan Vlastelica, Wanfeng Zhou, Chris Reese in New York; Brian Gorman, Ian Chua, Alex Lawler, Jan Harvey; writing by Herbert Lash)
