* Wall St shrugs off grim U.S. GDP data
* MSCI world equity index rises, European stocks mixed
* Oil rallies to around four-month highs
By Vivianne Rodrigues
NEW YORK, March 26 (Reuters) - Most global stocks traded
higher and emerging market assets rallied on Thursday as
investors looked beyond dire fourth-quarter U.S. economic data
for signs of recovery in the global economy.
Crude oil prices rose to about four-month highs on
expectations that economic stimulus packages might be working.
Consumer shares rose in the Wall Street after electronics
retailer Best Buy <BBY.N> reported results that topped
expectations and gave a strong forecast.
Government reports earlier showing the U.S. economy
contracted by an annual rate of 6.3 percent in the fourth
quarter, while weekly jobless claims hit a record high, had
limited impact. For more on the data see [].
"I think people realize the economy seemingly fell off the
cliff in the fourth quarter and continued in the first quarter
this year," said Doug Bender, managing director at McQueen,
Ball & Associates in Bethlehem, Pennsylvania. "The question now
is, Will you see a moderation in bad news?"
In early afternoon trading in new York, the Dow Jones
industrial average <>, the Standard & Poor's 500 Index
<.SPX> and the Nasdaq Composite Index <> were all up more
than 1 percent.
Markets have been in a buoyant mood this week following a
U.S. plan to persuade private firms to help rid banks of up to
$1 trillion in toxic assets.
U.S. Treasury Secretary Timothy Geithner outlined new
"rules of the game" in shaping regulatory reform designed to
curb risk-taking on Wall Street in a bid to restrain the type
of behavior that led to the current credit crisis.
[]
U.S. crude oil futures rose above $54 a barrel before
paring gains, underpinned by the generally weaker U.S. dollar
and recovering equities. Oil was last trading up 72 cents a
barrel to $53.49 <CLc1>. Other commodities also rallied, with
copper <MCU3> surging 3 percent.
"We are seeing some optimism, we are seeing some return of
risk appetite, both of which we have not seen for a while,"
said Mike Wittner, Societe Generale's global head of oil
research.
The renewed optimism fed into demand for riskier assets.
Asian equities <.MIAPJ0000PUS> and global emerging equities
<.MSCIEF> hit 11-week highs, and emerging sovereign debt
spreads <11EMJ> were trading around their narrowest since
November.
But European shares were mixed, ending flat after a
five-day rally as investors remained worried about the health
of the financial sector.
The FTSEurofirst 300 <> index of top European shares
finished little changed at 743.71, while Britain's FTSE 100
index of top shares <> was up 0.6 percent at 3,925.20.
DOLLAR FIRMS
The U.S. dollar rose against major currencies after
tumbling on Wednesday after Geithner said he was open to
expanding the use of the International Monetary Fund's special
drawing rights, appearing to endorse an idea put forward by
China.
The U.S. currency recovered after Geithner reiterated that
he expected the dollar to remain the top reserve currency for a
long time.
In early afternoon trading in New York, the dollar was up
0.3 percent against the euro at $1.3544<EUR=>, after losing
some ground on the U.S. gross domestic product data. It was up
0.8 percent against the yen at 98.44 <JPY=>.
U.S. 10-year Treasury notes <US10YT=RR> rose after the U.S.
data, making up territory recently lost on a return of risk
appetite and worries about oversupply in debt markets, but
one-month Treasury bills slipped into negative territory for
the first time since mid-December <US1MT=RR>.
June Bund futures <FGBLc1> last traded up 14 ticks to
123.16.
(Additional reporting by Carolyn Cohn in London, Leah Schnurr
and Nick Olivari in New York; Editing by Leslie Adler)
