* Higher oil, commodities lift equities
* Sterling hits seven-year low vs dollar
* Copper at two-week high on hope of China demand revival
* U.S. stock futures signal Wall St to open higher
By Nigel Stephenson
LONDON, Feb 22 (Reuters) - Shares rose in Europe and Asia on
Monday, boosted by higher oil and commodity prices, while
sterling fell sharply against the dollar and euro on concerns
Britain may vote to leave the European Union.
U.S. stock index futures ESc1 1YMc1 SPc1 signalled
Wall Street would open about 1.1 percent higher.
The British pound hit a seven-year low of $1.4067, down 2.3
percent on the day, putting it on track for its biggest daily
percentage loss since February 2009, while the euro rose 1.4
percent to 78.31 pence.
London Mayor Boris Johnson, a political heavyweight in the
ruling Conservative Party, said on Sunday he would support the
campaign to leave the EU in a June 23 referendum, putting him at
odds with Prime Minister David Cameron.
Cameron, who struck a deal to reform Britain's relations
with the EU last week, was due to make his case for staying in
the EU in parliament later on Monday.
With dealers expecting choppy trading in the run-up to the
vote, the cost of hedging against weakness in sterling hit its
highest in more than four years GBPVOL=
"The 'Out' camp were struggling to get a figurehead who was
popular and Boris has given them that boost," said Alvin Tan, a
strategist with French bank Societe Generale (PA:SOGN) in London.
"I think there is genuine worry that Britain might vote to
leave and the uncertainty is going to rise into the referendum."
British shares, however, rose in line with other European
bourses. London's resources-heavy FTSE 100 index .FTSE was up
1.3 percent.
"Brexit is not a story for equities at the moment but that
might change ... For sure the probability of Brexit has
increased after the positioning of Boris Johnson," said Jurgen
Michels, chief economist at BayernLB in Munich.
Ten-year yields on UK government debt GB10YT=RR rose 1
basis point to 1.42 percent, while euro zone benchmark German
10-year yields DE10YT=TWEB were flat at 0.2 percent.
The pan-European FTSEurofirst 300 share index .FTEU3 rose
1.4 percent, led by miners .SXPP , though a 2.9 percent fall in
HSBC HSBA.L after the bank's 2015 profit fell short of
expectations took its toll. HSBC earlier fell close to 5
percent.
Stocks also shrugged off a survey showing private sector
business activity in the euro zone increased at its weakest pace
in more than a year this month, according to Markit's composite
flash Purchasing Managers' Index.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 1 percent, having rebounded more than 4
percent last week.
China's benchmark indexes rose 2 percent as investors
welcomed Beijing's decision to replace its top securities
regulator and on signs the government was stepping up its
economic stimulus efforts. .SS
Tokyo's Nikkei .N225 closed up 0.9 percent, helped by a
weaker yen JPY= , which fell 0.6 percent to 113.20 per dollar.
The euro EUR= fell 1 percent to $1.1020, its weakest for
almost three weeks.
RIGS
Oil prices rose as a reduction in the number of U.S. rigs
was expected to lead to lower output. Global benchmark Brent
crude LCOc1 rose 4 percent, or $1.31 a barrel, to $34.32.
Russia and the Organization of the Petroleum Exporting
Countries (OPEC) proposed to freeze production at January
levels, though analysts said this would not help cut oversupply
which has seen prices fall 70 percent since mid-2014.
Copper CMCU3 hit a two-week high on hopes for a revival in
Chinese demand. The metal traded up 1.3 percent on the day at
$4,682 a tonne. Zinc CMZN3 hit a four-month high on worries
over a potential shortage.
Gold XAU= fell as stocks and the dollar rose. It was down
2 percent at $1,205 per ounce.