* MSCI world equity index edges up in holiday weekend trade
* U.S. ISM data eyed after upbeat Chinese, Korean figures
* Dollar eases versus basket of currencies
By Sujata Rao
LONDON, May 1 (Reuters) - Global stocks stayed near three- and-half-month highs on Friday in subdued holiday weekend trading after growing hopes of a global economic recovery propelled shares 11 percent higher last month.
Trade volumes were meagre as markets around the world are closed for the May 1 holiday -- Japan and London markets shut on Monday -- but sentiment remained supported by encouraging data from Asian export powerhouses China and South Korea.
"It's very quiet, with movements largely flow-driven but there is still a slight bid to risk," said Christian Lawrence, RBC Capital Markets strategist in London.
Most European bourses clung to the strong gains of April. The MSCI world equity index , which ended April with the biggest monthly gain in its 20-year history, was up 0.13 percent by 1200 GMT.
Britain's top shares were likewise near flat after gaining 1.3 percent on Thursday to post their biggest monthly percentage rise since 2003.
Emerging shares were 0.05 percent firmer, hovering at their highest since mid-October after ending April with the biggest monthly gain in 15 years.
Stock futures are pricing a stronger opening on Wall Street with the S&P 500 futures up 4.5 percent.
The appetite for risk kept up the pressure on the dollar, pushing the unit 0.4 percent lower against a basket of major currencies.
"Currencies continue to be driven by equities and risk appetite and the riskier commodity-based currencies have outperformed against the perceived safe-haven yen and dollar," Lawrence of RBC said.
Investors are now waiting for April factory survey figures expected from the U.S. Institute for Supply Management (ISM) at 1400 GMT to glean further clues to the health of the world's biggest economy. Next week's release of results of U.S. stress tests on banks will also reveal the state of the global financial system.
For the time being however, markets appear to be brushing off negative developments such as U.S. auto giant Chrysler's bankruptcy filing on Thursday and the possible economic impact of the spread of influenza A, widely known as swine flu.
Instead they are focusing on the hopeful note sounded by the Federal Reserve on the hard-hit U.S. economy and other cheery news including a smaller-than-expected drop in South Korean exports in April and a monthly survey of Chinese manufacturing suggesting an improving outlook.
Optimism that the global downturn may have seen its worst was also spurred by the fall in the number of U.S. jobless claims, which indicated that the pace of layoffs was easing.
Oil prices stayed above $50 a barrel after April saw prices posting their third monthly gain of almost 3 percent. Hopes of the global economy could be bottoming out have helped crude prices recover from a low of $32.40 per barrel hit last December.
But many participants are starting to advise caution.
"Maybe the (stock) selloff we saw until March was a bit excessive but the optimism that has returned also is excessive," said Murat Toprak, emerging markets strategist at Societe Generale in London.
"A lot of problems have not been fixed...if the hoped-for economic recovery does not materialise we could see a dramatic setback. I think we have gone too far in this rally and we should see a more cautious tone in coming weeks," he added.
(Reporting by Sujata Rao; Additional reporting by Sebastian Tong and Jessica Mortimer in London; Editing by Victoria Main)