* MSCI world equity index up 0.4 percent at 206.10
* Measures by Japan, Australia help calm corporate fears
* Yen slightly weaker; government bonds slip
By Natsuko Waki
LONDON, Feb 3 (Reuters) - World stocks and oil ticked higher on Tuesday as Japan and Australia stepped up efforts to boost ailing economies, helping calm fears about deteriorating corporate profits.
Australia slashed interest rates by a full percentage point to a record low of 3.25 percent and unveiled a $26 billion stimulus. The Bank of Japan said it would buy up to $11 billion of shares held by banks.
The U.S. Senate was due to begin a series of votes on $900 billion in tax cuts and new spending President Barack Obama says will help fight the worst economic crisis since the Great Depression.
The moves come as leading companies on both sides of the Atlantic unveil fourth-quarter earnings results, which are expected to show deteriorating profits.
"Overall in Europe it looks a little more positive, but I do not necessarily see that as a profound trend you would hang your hat on at the moment. There is still going to be a lot of weakness," said Justin Urquhart Stewart, director at Seven Investment Management. MSCI world equity index was up 0.4 percent.
London shares were up 0.2 percent. Here, signs that a weakening pound was helping some companies also helped.
Vodafone Group, the world's largest mobile phone group by sales, beat third-quarter forecasts for revenues and increased its guidance to reflect foreign exchange movements.
Sterling fell to a 23-year low of $1.3811 last month.
The FTSEurofirst 300 index of leading European shares gained 0.4 percent and emerging stocks rose nearly 1 percent.
U.S. crude oil rose to $40.42 a barrel.
The March Bund future fell 11 ticks as stocks and other assets rose.
The dollar fell 0.2 percent against a basket of major currencies. The yen lost 0.2 percent at 89.64 per dollar after the BOJ's move.
"The move comes in clear BOJ opposition to a suggestion by some leading coalition lawmakers that the government print its own paper notes," Japanese bank BOTM-UFJ said in a note to clients.
"Basically this puts stock support and yen weakness at odds ... The message is: expect a breakdown in correlation between dollar/yen and stocks, which is still unsustainably high." (Additional reporting by Joanne Frearson, editing by Mike Peacock)