GLOBAL MARKETS-Banks, China boost equities to 2009 high

                                
 * World stocks at new 2009 high
                                
 * European banks, China economy support equities
                                
 * Dollar at 2009 low vs major currencies
                                
 
                                
 By Jeremy Gaunt, European Investment Correspondent
                                
 LONDON, Aug 3 (Reuters) - World stocks clambered 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 fell to a 2009 low against a basket of major
currencies.
                                
 European shares rose after UBS <UBSN.VX> appeared to have
settled a tax dispute without the need to pay a fine, bad debts
at Barclays <BARC.L> failed to unsettle investors and HSBC
<HSBA.L> beat earnings expectations.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
was up 1.2 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. [nL3593368]
                                
 UBS shares rose 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.
                                
 HSBC said its first half profits halved from a year ago to
$5 billion but the results were better than analysts had
calculated. [nL3661800]
  Asian stocks clambered 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. [ID:nPEK360544]
                                
 The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> were up 1.2 percent, passing the levels of 
early September last year and taking gains on the year to around
 47 percent.
                                
 The MSCI all-country world share index was up 0.9 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 hit its lowest point this year against a basket
of currencies after higher oil prices, firm global stock markets
and economic data boosted investments in riskier assets.
                                
 The euro was around a two-month peak against the dollar at
$1.4269 <EUR=>.
                                
 Euro zone government bond yields jumped higher.
                                
 The 10-year Bund yield was at 3.316 percent <EU10YT=RR>, 3.3
basis points more than in late Friday trade while Schatz yielded
1.286 percent <EU2YT=RR>.
 (Editing by Mike Peacock)
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