GLOBAL MARKETS-World stocks hit 5-month peak; dollar tumbles

* MSCI world equity index up 0.3 pct at 313.10

* Stocks jump on prospect of more money printing

* Dollar falls to 8-month low vs euro; oil firms

By Natsuko Waki

LONDON, Oct 7 (Reuters) - World stocks hit a five-month high on Thursday while emerging equities held near a 27-month peak, backed by expectations that the prospect of more money printing by advanced economies would support the global economy.

The dollar fell to eight-month lows against the euro while oil jumped and gold rose to a record high as investors bet that huge liquidity being pumped by developed central banks would reflate the global economy, supporting risky assets such as stocks.

While the European and British central banks were expected to keep their interest rates on hold at record lows on Thursday, many expect the U.S. Federal Reserve to launch an additional monetary easing programme next month.

Japan cut its interest rates to zero this week and readied nearly $60 billion for further asset purchases.

"The markets have been pushed up on the expectations of QE (quantitative easing), but that's generally U.S. QE. People expect the Fed to do more QE next month," said Philip Isherwood, European equities strategist at Evolution Securities. The MSCI world equity index <.MIWD00000PUS> rose 0.3 percent while the Thomson Reuters global stock index <.TRXFLDGLPU> was 1 percent higher. The MSCI index has gained just over 4 percent since January.

The FTSEurofirst 300 index <.FTEU3> rose 0.2 percent while emerging stocks <.MSCIEF> was unchanged on the day.

The yen rose to a 15-year high around 82.24 per dollar while the Australian dollar surged to a 27-year high of $0.9915. The euro hit 8-month peaks near $1.40 .

"The euro is rising because the ECB is not focusing on QE ... There's still huge optimism for a higher euro across our client base," said Manuel Oliveri, currency strategist at UBS in Zurich.

Global tensions among nations over currency valuations are expected to top the agenda at a Group of Seven meeting in Washington this weekend and at Group of 20 meetings that kick off in Seoul later this month.

Developing countries worry that ultra-low interest rates in rich countries are fuelling massive fund flows into their markets, pushing up their currencies and inflating prices of stocks, property and other assets.

The dollar fell 0.3 percent against a basket of major currencies, helping push U.S. crude oil up by 0.6 percent to $83.69 a barrel. [O/R] A falling U.S. dollar, linked to the expected inflow of fresh dollars into the economy, has spurred money flows into oil and other commodities.

Gold hit a new record high of $1,364.60 at one point. It has gained nearly 10 percent in the last month and is on course for its strongest week in six months. [ID:nLDE6960OM]

In the bond market, bund futures fell 43 ticks after strong Spanish and French debt auctions and ahead of the European Central Bank's policy meeting. (Editing by Susan Fenton)