* MSCI world equity index up 0.7 pct at 263.38
* World stocks at 9-mth peak; emerging stocks at 10-mth high
* Oil, euro rally; dollar, government bonds fall
By Natsuko Waki
LONDON, July 27 (Reuters) - World stocks rose to 9-month
highs and the euro hit a 7-week high versus the dollar on Monday
as a recent run of strong corporate earnings and anticipation of
more boosted optimism for a global economic recovery.
Tokyo's stock market posted its longest winning streak in 21
years while emerging Asian stocks <.MIAPJ0000PUS> hit a 10-month
high. U.S. stock futures pointed to a higher open on Wall Street
later following strong gains in most indexes on Friday.
This week's results include Exxon Mobil <XOM>, Honda Motor
<7267.T>, Motorola <MOT>, Deutsche Bank <DBKGn.DE> and BP
<BP.L>.
"Risk appetite (is) quite healthy, there is lower volatility
in stock markets... which continue to register gains," said
Patrick Jacq, euro zone interest rate strategist at BNP Paribas
in Paris.
"If these earnings are in line or above expectations we can
see risk appetite continue to be in the driving seat."
MSCI world equity index <.MIWD00000PUS> rose 0.7 percent,
hitting levels not seen since October, adding to gains over 4
percent last week.
Since March 8, the index has had 16 weeks of gains versus
just four of losses.
The FTSEurofirst 300 index <> rose 0.6 percent to a
fresh 8-1/2 month peak with media and utilities shares leading
the rally. S&P futures <SPc1> were up 0.4 percent.
Emerging stocks <.MSCIEF> rose 1.4 percent to hit a fresh
10-month high.
According to Thomson Reuters data, the second-quarter
earnings growth rate for the U.S. benchmark S&P 500 index <.SPX>
improved to -31.0 percent last week from -35.2 percent in the
previous week, thanks in part to better-than-expected earnings
from financial sector firms.
Of the 184 companies in the S&P 500 index that have reported
earnings to date for the second quarter, 77 percent have beaten
expectations.
The materials, energy, industrial sectors are anticipating
the lowest earnings growth rates for the quarter.
This week, a further 146 S&P 500 companies are due to
announce earnings results.
U.S. crude oil <CLc1> rose 0.6 percent to $68.50 a barrel.
The September bund futures <FGBLc1> fell 24 ticks as
investors sought riskier instruments over safe-haven government
bonds.
The euro rose as high as $1.4298 <EUR=> while the dollar
<.DXY> fell 0.3 percent against a basket of major currencies.
Against the low-yielding yen it rose 0.4 percent to 95.14 per
dollar <JPY=>.
A weaker dollar helped push gold to a 6-1/2 week high of
$958 an ounce <XAU=>.
"Investors are overall still optimistic for global growth,
so the dollar and yen should remain on the back foot," said Lee
Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
Investors are awaiting the outcome of a two-day meeting of
top U.S. and Chinese officials in Washington, which started on
Monday, on a broad range of economic, security, diplomatic,
energy and environmental issues.
The United States, which ran a record $266 billion trade
deficit with China in 2008, is seeking ways to rebalance trade,
including persuading the Chinese to liberalise exchange rates so
that the yuan appreciates to trim Chinese exports and boost
imports.
(Additional reporting by Tamawa Desai; Editing by Toby Chopra)
