GLOBAL MARKETS-Stocks, oil rally after US home sales data

* Markets rebound, helped by U.S. home sales data

* Yen slides after Japan's prime minister resigns

* Bond prices dip as higher stock prices curb bids

* Oil rises above $73 a barrel (Updates with opening of U.S. markets; changes byline, dateline NEW YORK)

By Herbert Lash

NEW YORK, June 2 (Reuters) - Global stocks pared losses and U.S. stocks rose on Wednesday after favorable April U.S. home sales data, while the yen fell on Japanese Prime Minister Yukio Hatoyama's resignation, as his likely successor has advocated a weak currency.

Oil prices rose above $73 a barrel as the early rally in U.S. stocks eased concerns that the European sovereign debt crisis could fetter a fragile recovery in fuel demand. For details see: [ID:nSGE65107O]

U.S. government debt prices dipped as rising stocks offered a semblance of stability for jittery investors and curbed appetite for safe-haven bonds. [ID:nN02334707]

A survey showed pending sales of previously owned U.S. homes rose more than expected in April, scaling a six-month high as prospective home owners took advantage of a popular home buyer tax credit. [ID:nN02163984]

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in April, increased 6.0 percent, to 110.9, the highest since October. Analysts polled by Reuters had forecast pending home sales rising 5.0 percent.

"This report is a confirmation that there's housing demand out there and confirmation of an improving labor market," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"All of this suggests that things are improving," he said.

But European shares remained lower, with BP Plc leading the energy sector down after the launch of a U.S. criminal probe into the Gulf of Mexico oil spill. Banks weakened on worries about the euro-zone crisis.

MSCI's all-country world equity index <.MIWD00000PUS> pared losses after the U.S. housing data but were still down almost 0.1 percent.

The pan-European FTSEurofirst 300 <.FTEU3> also pared losses, but was down 0.22 percent at 1000.64 points.

Before 10:30 a.m., the Dow Jones industrial average <.DJI> was up 74.60 points, or 0.74 percent, at 10,098.62. The Standard & Poor's 500 Index <.SPX> was up 9.25 points, or 0.86 percent, at 1,079.96. The Nasdaq Composite Index <.IXIC> was up 21.18 points, or 0.95 percent, at 2,243.51.

YEN FALLS ON PM DEPARTURE

The U.S. dollar was up 1.4 percent at 92.27 against the yen .

"The political turmoil in Japan has damaged some of the yen's safe harbor reputation as Hatoyama became the fourth Japanese prime minister in four years to leave the office," said Boris Schlossberg, a director of currency research at GFT, in New York.

The dollar was up against a basket of major currencies, with the U.S. Dollar Index <.DXY> up 0.43 percent at 87.016.

The euro was down 0.15 percent at $1.2207.

U.S. crude prices for July rebounded to rise 62 cents to $73.20 a barrel after the pending home sales data.

ICE Brent rose $1.0.1 cents to $73.71 a barrel.

The benchmark 10-year U.S. Treasury note was down 8/32 in price to yield at 3.29 percent.

The MSCI index of Asia Pacific stocks outside Japan <.MIAPJ0000PUS> fell 0.6 percent. Japan's Nikkei stock average <.N225> fell nearly 1 percent, surrendering some early gains. (Reporting by Ryan Vlastelica, Vivianne Rodrigues, Richard Leong in London; Emma Farge and Brian Gorman in London; Writing by Herbert Lash; Editing by Padraic Cassidy)