* MSCI world equity index up 0.1 percent at 323.11
* China data, strong Wall Street underpin mood
* Dollar, euro steady; bunds, Treasuries higher
By Natsuko Waki
LONDON, Dec 10 (Reuters) - World stocks edged higher on
Friday as investors grew more confident about the prospect for
economic recovery following robust U.S. and Chinese data while
Treasuries stabilised after a sell-off earlier this week.
Friday's data showed China's imports and exports were much
stronger than expected in November, robust numbers that served a
reminder that Chinese demand was still growing apace and could
pave the way for an interest rate rise as soon as this weekend.
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Recent figures suggest the United States and stronger
European economies are also picking up steam.
"The Chinese numbers and the performance of the U.S.
overnight justify a higher start," Heino Ruland, strategist at
Ruland Research in Frankfurt, said.
On Wall Street on Thursday, the benchmark S&P 500 index
<.SPX> hit a two-year high with data showing first-time claims
for jobless benefits fell more than expected last week.
MSCI world equity index <.MIWD00000PUS> rose 0.1 percent
while the FTSEurofirst 300 index <> gained the same
amount.
TREASURIES RECOVER
U.S. Treasuries edged up thanks to a strong auction of
30-year bonds that reflected investor appetite. Treasuries sold
off heavily earlier in the week on U.S President Barack Obama's
plans to extend low tax rates. However, those plans hit some
opposition ahead of a Senate vote next week.
Rising U.S. Treasury yields this week and growing inflation
concerns in developing economies -- together with the prospect
of tighter Chinese policy -- also encouraged investors to scale
back their already overstretched bets on emerging markets.
Emerging stocks <.MSCIEF> lost 0.2 percent, partly on
concerns about China's possible measures to tighten the economy.
"Data all suggest that further policy normalization is
needed to keep China's economy on an even keel. So far, China
has made only modest moves in this direction," RBC said in a
note to clients.
"We expect to see more urgency from Beijing in the months
ahead as tackling inflation becomes a greater priority, with
both rate hikes and currency appreciation likely to be
employed."
Ten-year Treasuries <US10YT=RR> were up 8/32 in price to
yield 3.185 percent, off a six-month high of 3.330 percent
reached on Wednesday.
The sale of $13 billion of reopened 30-year U.S. bonds went
through at a yield below the level trading on the open market,
indicating investors bid aggressively for the debt, with strong
demand particularly from foreign buyers.
The dollar <.DXY> was steady against a basket of major
currencies, while the euro <EUR=> was also unchanged at $1.3236
<EUR=>.
U.S. crude oil <CLc1> rose a quarter percent to $88.59 a
barrel. The bund futures <FGBLc1> rose 0.2 percent.
(Reporting by Natsuko Waki, editing by Mike Peacock)
