* MSCI world equities hit 10-month high at 273.10
* European stocks, oil rise after euro zone growth data
* Chinese stocks fall, safe-haven yen gains
By Carolyn Cohn
LONDON, Aug 14 (Reuters) - World stocks hit 10-month highs
for a second day running on Friday after euro zone growth data
in the previous session and positive earnings from the world's
largest retailer also boosted sentiment.
Germany and France, the euro zone's two biggest economies,
both reported 0.3 percent second-quarter growth on Thursday,
ending their recessions earlier than expected.[]
European stocks also took their cue from Wall Street, where
better than expected earnings by Wal-Mart Stores Inc <WMT.N>
helped offset weak U.S. data on retail sales and jobs.
"The positive figures out of Germany and France are still a
favourable factor for the market, though such prospects had been
somewhat priced in during the global market rally over the past
month," said Soichiro Monji, chief strategist at Daiwa SB
Investments in Tokyo.
The MSCI world index <.MIWD00000PUS> gained over 0.2 percent
to 273.20, its best showing since mid-October 2008.
The pan-European FTSEurofirst 300 <> index of top
shares rose 0.56 percent, approaching the previous session's
nine-month high.
World stocks have rallied more than 2 percent in the past
three days, after the U.S. Federal Reserve said this week the
U.S. economy was showing signs of levelling out and it moved to
phase out one emergency measure.
"There's still an ongoing reaction to Wednesday's statement
from the Fed that the economy is stabilising," said Bernard
McAlinden, investment strategist at NCB Stockbrokers in Dublin.
Investors are becoming less cautious as they see an end to
the global recession.
Oil prices rose for the third consecutive day, towards $71 a
barrel <CLc1>.
However, Chinese stocks <> slid 3 percent to their
lowest close in six weeks and posted their biggest weekly drop
in five months, with financial shares weak as worries about
additional share supplies weighed on the market.
Losses in Chinese shares are hampering higher-risk markets.
Emerging stocks <.MSCIEF> rose 0.4 percent, but held below
recent 11-month highs.
The yen rose against the euro and dollar, its safe-haven
status boosted by the Chinese stock losses.
The yen gained around 0.20 percent against the dollar to
95.20 <JPY=> and 0.35 percent against the euro to 135.87
<EURJPY=>.
The euro was steady against the dollar at $1.4272 <EUR=>.
Euro zone government bond futures <FGBLc1> hit a one-week
high, tracking U.S. Treasuries after a well-received 30-year
U.S. Treasury auction on Thursday. The Bund future was up 43
ticks.
(Additional reporting by Umesh Desai in Hong Kong and Brian
Gorman in London, editing by Mike Peacock)
