* Global stock gauge paces to best day in 3 weeks
* Japan reiterates readiness to intervene on yen
* Oil up as supply disruptions offset stockpile worry
* Greek market hits 2016 high on prospect of debt relief
(Updates with opening of U.S. markets)
By Lewis Krauskopf
NEW YORK, May 10 (Reuters) - World stock markets rallied on
Tuesday as oil prices climbed and companies reported solid
earnings, while the yen again retreated against the dollar.
MSCI's broad gauge of global stocks .MIWD00000PUS climbed
0.9 percent, on pace for its best session in three weeks. The
U.S. benchmark S&P 500 gained 0.9 percent and the pan-European
FTSEurofirst 300 .FTEU3 index advanced 0.8 percent.
The yen fell against the dollar for a second day as a key
Japanese economic adviser reiterated that the country was
prepared to intervene in currency markets.
But against a basket of currencies, the dollar was little
changed, helping to steady oil and other commodities denominated
in the greenback.
The Dow Jones industrial average .DJI was rising 172.68
points, or 0.98 percent, at 17,878.59, the S&P 500 .SPX was
gaining 18.28 points, or 0.89 percent, at 2,076.97 and the
Nasdaq Composite .IXIC was adding 31.65 points, or 0.67
percent, at 4,781.86.
"I'd probably say it's the currency fluctuations that are
influencing the market in the short term," said Walter Todd,
chief investment officer at Greenwood Capital Associates in
Greenwood, South Carolina.
Allergan (NYSE:AGN_pa) AGN.N shares propped up the S&P 500 after the
U.S. pharmaceutical company posted strong earnings.
Results from Credit Suisse CSGN.S and jewellery maker Pandora
PNDORA.CO helped the European index.
"The market has been resilient and has offered the
opportunity for the buyers of the pullback to capitalize on it
and that's why we're seeing a move back into equities," said
Andre Bakhos, managing director at Janlyn Capital LLC in
Bernardsville, New Jersey.
Greek shares .ATG hit their highest level in 2016 after
euro zone finance ministers offered to grant Greece some debt
relief, with the move causing Greek 10-year bond yields
GR10YT=TWEB to fall below 8 percent for the first time since
early December.
The yen slid 0.7 percent against the dollar as risk appetite
improved for a second straight session, undermining traditional
safe havens such as the Japanese currency. Repeated verbal
warnings from Japan over the weekend and on Tuesday saying it
was prepared to step in to weaken the currency has also held off
investors.
Oil prices rose as supply disruptions of 2.5 million barrels
per day in Canada and elsewhere offset concerns about growing
record high U.S. crude stockpiles.
U.S. crude CLc1 gained 2 percent to 444.30 a barrel, while
benchmark Brent crude LCOc1 rose 3.2 percent to $45.03 a
barrel. Oil prices have recovered some ground after touching
12-year lows earlier in 2016.
U.S. Treasuries were steady before the government was due to
sell $24 billion in three-year notes.
Benchmark 10-year notes US10YT=RR gained 1/32 in price on
Tuesday to yield 1.7578 percent, down from 1.76 percent on
Monday.