* MSCI world index jumps nearly 1.8%
* Dollar falls from two-month highs
* U.S. Treasury yields hover near 0.66%
(Updates through close of U.S. trading)
By David Randall
NEW YORK, Sept 28 (Reuters) - Global equity markets surged
and the dollar fell from two-month highs on Monday as investors
moved into beaten-down sectors such as banks and travel on the
heels of last week's sharp sell-off.
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.
"We're 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
gained 1.68% following broad gains in Asia and Europe.
The STOXX 600's banking stock index was up 5.6%, after
hitting a fresh all-time low on Friday.
On Wall Street, Dow Jones Industrial Average rose
410.1 points, or 1.51%, to 27,584.06, the S&P 500 gained
53.23 points, or 1.61%, to 3,351.69 and the Nasdaq Composite
added 203.96 points, or 1.87%, to 11,117.53.
Hotels, banks and airline stocks all gained more than the
broad market, with Delta Air Lines Inc up more than 5%
and Bank of America Corp up nearly 2.5%.
The dollar index fell 0.295%, with the euro up
0.3% to $1.1665.
Investors remain cautious in light of rising new COVID-19
infections in Europe, which pose the risk of further
restrictions on activity.
Spot gold added 1.2% at $1,881.49 an ounce. U.S. gold
futures gained 0.89% at $1,874.30 an ounce.
Benchmark 10-year notes last fell 1/32 in price
to yield 0.661%, from 0.659% late on Friday.
"You're seeing a nice bounce for stocks, but it's more of an
oversold bounce, and the bond market is still apprehensive about
totally buying in on this equity move," given the uncertainty
over additional U.S. fiscal stimulus and the Nov. 3 presidential
election, said Ryan Detrick, chief market strategist at LPL
Financial.
U.S. crude rose 0.82% to $40.58 per barrel and Brent
was at $42.47, up 1.31% on the day.
(Reporting by David Randall; editing by Jonathan Oatis and
Richard Chang)