* World stocks hit year high
* Oil above $66 a barrel
* Dollar sinks to 5-month low
By Jeremy Gaunt, European Investment Correspondent
LONDON, May 29 (Reuters) - World stocks posted a new 2009 high on Friday, hitting levels last seen six months ago, and the dollar sank to a five-month low against major currencies on hopes the global economy has seen the worst of its downturn.
Wall Street looked set to join the rally after revised first-quarter U.S. GDP figures showed less of a contraction than initial estimates.
Commodity prices also gained, with oil at a six-month high above $66 a barrel.
"We're back to the pro-risk theme, as markets continue to anticipate growth to return in the second half of the year," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
MSCI's all-country world stock index was up 1 percent, having hit 245.93, its highest level since late October. The index has gained around 43 percent since a global stock market rally began in March.
Emerging markets stocks were also at year highs.
The pan-European FTSEurofirst 300 was up 1 percent and Japan's Nikkei average closed up 0.75 percent at a more than seven-month high.
Stock markets have been rising since March, although there had been some signs recently of an easing off in gains.
Hopes for a second-half recovery in the global economy, however, have been fanning demand for riskier assets and those tied to growth.
The Reuters-Jefferies CRB index, a global commodities benchmark, is up 12.3 percent for the month, on its way to the biggest monthly gain since July 1974.
"Gains in commodities reflect continued recovery of demand outlook from its collapse after Lehman's bankruptcy triggered concerns of a depression," said Dariusz Kowalczyk, chief investment strategist with SJS Markets in Hong Kong.
"Medium-term outlook remains positive for commodities and other risky asset classes as we continue to expect that U.S. GDP will start to expand in Q3 and several major Asian economies already in Q2," he said in a note.
Spot gold was up 1.5 percent at $973 an ounce for a near 10 percent gain on the month.
DOLLAR DOWN
Some of the rise in commodity prices is linked to the fall in the dollar, which hit a five-month low against a basket of currencies.
Signs the global recession may have passed its worst has reignited concern about ballooning U.S. government debt and prompted investors to sell the safe-haven currency.
The euro rose 1.2 percent to above $1.41 and the dollar sank 1.3 percent to less than 96 Japanese yen.
Higher-yielding currencies were big gainers as befits a mood of risk appetite. The New Zealand dollars gained nearly 2.2 percent against its U.S. counterpart.
Yields on euro zone government bonds fell despite the stock gains.
"Euro zone supply is out of the way ... maybe there's a bit of a chance of an end of week recovery," said a trader in London. "There's a fair bit of data so there's a danger that U.S. data comes out on the strong side again and knocks things down. (Additional reporting by Tamawa Desai; Editing by Jason Neely) (To read Reuters Global Investing Blog click on http://blogs.reuters.com/globalinvesting; for the MacroScope Blog click on http://blogs.reuters.com/macroscope; for Hedge Hub click on http://blogs.reuters.com/hedgehub)