* MSCI world equity index up 0.5 percent at 262.83
* World stocks at 9-mth peak; emerging stocks at 10-mth high
* Oil rallies; dollar, government bonds fall
By Natsuko Waki
LONDON, July 27 (Reuters) - World stocks raced to fresh nine-month highs and oil rallied on Monday as a recent run of strong corporate earnings and anticipation for more boosted optimism for a recovery in the global economy.
Tokyo stocks posted its longest winning streak in 21 years while emerging Asian stocks hit a 10-month high, following strong gains in most of Wall Street indexes on Friday.
This week's results include Exxon Mobil, Honda Motor, Motorola, Deutsche Bank and BP.
"Risk appetite (is) quite healthy, there is lower volatility in stock markets... which continue to register gains," said Patrick Jacq, euro zone interest rate strategist at BNP Paribas in Paris.
"If these earnings are in line or above expectations we can see risk appetite continue to be in the driving seat." MSCI world equity index rose half a percent, hitting levels not seen since October, adding to gains over 4 percent last week.
The FTSEurofirst 300 index rose 0.6 percent with basic resource shares leading the rally.
Emerging stocks hit a fresh 10-month high.
According to Thomson Reuters data, the second-quarter earnings growth rate for the U.S. benchmark S&P 500 index improved to -31.0 percent last week from -35.2 percent in the previous week, thanks in part to better-than-expected earnings from financial sector firms.
Of the 184 companies in the S&P 500 index that have reported earnings to date for the Q2, 77 percent have beaten expectations.
The materials, energy, industrial sectors are anticipating the lowest earnings growth rates for the quarter.
This week. a further 146 S&P 500 companies are due to announce earnings results.
U.S. crude oil rose more than 1 percent to $68.74 a barrel.
The September bund futures fell 22 ticks as investors sought riskier instruments over safe-haven government bonds.
The dollar fell 0.17 percent against a basket of major currencies. Against the yen it rose 0.2 percent to 94.98 per dollar.
Investors are awaiting the outcome of a two-day meeting of top U.S. and Chinese officials in Washington, which started on Monday, on a broad range of economic, security, diplomatic, energy and environmental issues.
The United States, which ran a record $266 billion trade deficit with China in 2008, is seeking ways to rebalance trade, including persuading the Chinese to liberalise exchange rates so that the yuan appreciates to trim Chinese exports and boost imports.
"Any remarks from China related to its stance on its U.S. Treasury holdings and the dollar's role is a focus," a trader at a Japanese bank said. (Additional reporting by Emelia Sithole-Materise and Kirsten Donovan; Editing by Andy Bruce)