* World stocks at new 2009 high
* European banks, China economy support equities
* Dollar near 2009 low vs major currencies
By Jeremy Gaunt, European Investment Correspondent
LONDON, Aug 3 (Reuters) - World stocks climbed to a new 2009
high on Monday with banking news from Europe generally positive
and signs of a pick up in Chinese economic activity lifting
Asian shares.
The dollar recovered slightly from early lows against a
basket of major currencies <.DXY> but was close to a 2009
trough.
European shares rose after UBS <UBSN.VX> appeared to have
settled a tax dispute without the need to pay a fine and with
investors digesting results from Barclays <BARC.L>.
The FTSEurofirst 300 <> index of top European shares
was up 0.7 percent and has now gained more than 44 percent from
its lifetime low on March 9.
Barclays reported an 8 percent rise in half-year profit but
bad debts almost doubled. []
UBS shares rose 4.1 percent on reports it may not have be
fined as part a settlement with the U.S. Government on wealthy
Americans suspected of using the Swiss bank to evade taxes.
Asian stocks crawled up to an 11-month high, helped by
Chinese shares.
Two surveys showed Chinese factory growth accelerating in
July thanks to a revived domestic economy and slight pick-up in
demand for its exports. The China purchasing managers index from
brokerage CLSA hit a one-year high. []
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> rose 0.9 percent to the highest levels since
early September last year, taking gains on the year to 47
percent.
Globally, the MSCI all-country world share index was up 0.6
percent, eclipsing its previous high for the year which was
reached on Friday. This has in part been fuelled by upbeat
company results, particularly on Wall Street.
"All in all, given the better than expected corporate
results, the markets continue to support the idea of an imminent
recovery," wealth manager BSI said in a note, adding that risk
appetite was growing as more investors fear missing the rally.
DOLLAR IN DUMPS
The dollar hovered near its lowest point this year against a
basket of currencies after higher oil prices, firm global stock
markets and U.S. GDP data boosted investments in riskier assets.
In early Asian trade, the greenback hit its lowest level
since December against the currency basket. It later recovered
slightly.
"Ahead of many events this week such as economic data in the
U.S. and earnings from major companies in Europe and Japan,
investors largely stayed on the sidelines," said Yuji Saito,
head of the forex sales department at Societe Generale.
"As long as the market will be able to cope with those
economic events, it will likely keep its risk-taking stance," he
said.
The euro reversed earlier gains to a two-month peak against
the dollar in choppy trade and was at $1.4222 <EUR=>.
Euro zone government bond yields nudged higher.
The 10-year Bund yield was at 3.296 percent <EU10YT=RR>, 1.6
basis points more than in late Friday trade while Schatz yielded
1.285 percent <EU2YT=RR>.
(Editing by Mike Peacock)
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