* Some stock markets prosper, commodities take a hit
* Europe off to subdued start, mining stocks fall
* Some optimism over Greece
* Malaysian ringgit plumbs 17-year lows
By Lionel Laurent
LONDON, Aug 10 (Reuters) - A deepening slowdown in demand in
China took centre-stage on Monday, boosting some stock markets
on hopes of more policy stimulus even as it knocked commodity
prices.
China's stock markets bucked broad cautiousness in Asian
equities with major indices up between 2 and 4 percent, while
European trading got off to a subdued start as mining and energy
stocks pulled the pan-European FTSEurofirst 300 equity index
.FTEU3 down 0.2 percent.
Chinese producer prices in July hit their lowest point since
late 2009 and exports tumbled 8.3 percent in the same month,
stoking expectations of more action from the central bank after
months of intervention by the authorities to tame China's unruly
stock market.
"Expectations of further easing are building and
announcements of liberalisation have boosted the equity market,"
said Kit Juckes, senior FX strategist at Societe Generale (PARIS:SOGN) in
London.
The outlook in China contrasted with solid U.S. data on
Friday that appeared to keep expectations on track for an
interest rate rise as early as September.
The dollar stayed close to a nearly four-month high against
a basket of currencies on Monday, while 10-year German and U.S.
Treasury yields were one basis point higher.
"The dislocation from a strong dollar, rising long rates and
falling oil prices is still being factored into share prices in
our view," said Sean Darby, strategist at Jefferies.
The MSCI All-Country World index .MIWD00000PUS was flat,
while emerging-market equities were up 0.1 percent.
There was also some optimism over Greece, where official
comments pointed to a speedy wrap-up of bailout talks designed
to save the country from financial ruin.
Commodity prices took a hit: London copper traded at
six-year lows and crude oil futures touched fresh multi-month
lows. London-listed mining shares like BHP Billiton BLT.L and
Anglo American AAL.L fell more than 2 percent.
The Malaysian ringgit plumbed lows last seen during the
Asian financial crisis 17 years ago, after a fall in foreign
exchange reserves raised doubts over the currency's ability to
withstand pressure from political uncertainty and slower growth.
The Turkish lira was a touch higher despite an attack on the
U.S. consulate building in Istanbul, while 10 people were
injured in a car bombing at a police station overnight, weeks
after Turkey launched what it described as a "synchronised war
on terror".
(Editing by Keith Weir)