* MSCI world index jumps nearly 1.6%
* Dollar falls from two-month highs
* U.S. Treasury yields hover near 0.66%
By David Randall
NEW YORK, Sept 28 (Reuters) - Global equity markets surged and the dollar fell from two-month highs Monday as investors moved into the shares of beaten-down sectors on the heels of a sharp stock market sell-off the week before.
Asian shares gained, with Chinese shares boosted by data over the weekend showing China's industrial firms grew for the fourth consecutive month in August. seeing a bit of a relief rally," said Jonathan Bell, chief investment officer at Stanhope Capital. "Things got oversold perhaps a little bit in the short term."
"We saw quite a lot of exuberance in July and August, with prices particularly of tech stocks rising and that then has come off a little bit recently," he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.58% following broad gains in Asia and Europe. The STOXX 600's banking stock index was up 4.4%, after hitting a fresh all-time low on Friday .SX7P .
In morning trading on Wall Street, the Dow Jones Industrial Average .DJI rose 422.7 points, or 1.56%, to 27,596.66; the S&P 500 .SPX gained 47.91 points, or 1.45%, to 3,346.37; and the Nasdaq Composite .IXIC added 163.85 points, or 1.5%, to 11,077.41.
Currency markets indicated increased risk appetite, as the riskier Australian dollar AUD=D3 , New Zealand dollar NZD=D3 , Swedish crown SEK=D3 and Norwegian crown NOK=D3 were all up against the U.S. dollar, recouping some losses from the previous week. dollar index fell, erasing some of last week's gains, down 0.4% on the day at 94.157 at 7:54 a.m. EDT (1154 GMT) =USD .
Investors remain broadly cautious in light of rising new COVID-19 infections in Europe, which pose the risk of further restrictions on activity. 10-year notes US10YT=RR last fell 1/32 in price to yield 0.661%, from 0.659% late on Friday.
Oil prices were mixed as an increasing number of virus cases damaged hopes for a smooth recovery in fuel demand, with the main crude benchmarks on track for their first monthly falls since April. crude CLc1 recently fell 0.05% to $40.23 per barrel and Brent LCOc1 was at $42.20, up 0.67% on the day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets
http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Emerging markets
http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap
http://tmsnrt.rs/2EmTD6j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>