GLOBAL MARKETS-World stocks rise on China; US dollar down

* World stocks rise on global recovery optimism

* U.S. stocks mixed ahead of start of earnings reports

* US dollar down on rise of risk appetite (Updates with U.S. closing prices)

By Manuela Badawy

NEW YORK, Jan 11 (Reuters) - World stocks rose on Monday hitting 15-month highs on stronger-than-expected Chinese trade data, reviving bets on global economic recovery, while the U.S. dollar fell broadly as risk appetite increased.

U.S. stocks zig-zagged as investors took a breather after a week of gains that pushed the S&P 500 to close at fresh 15-month highs, while nervous investors braced for the start of the quarterly earnings reporting season.

The U.S. dollar fell following Friday's weak U.S. jobs data and comments from a Federal Reserve official that interest rates in the United States are likely to stay low for quite some time.

Global equities measured by the MSCI All-Country World Index <.MIWD00000PUS> rose 0.72 percent after rising to the highest since late September of 2008. Emerging stocks hit 17-month highs rising 1.09 percent, following a 74 percent rally last year.

"We have got a lot of data coming out over the next few weeks and the fourth-quarter earnings season in the United States is about to start, so there is every reason for investors to stay on the sidelines." said Jim Wood Smith, head of research at Williams de Broe in London.

Growth in China's exports and imports last month pushed commodities higher with gold rising 1.4 percent to a 5-week high, copper jumping 1.5 percent and aluminum advancing 2.45 percent.

Exports rose 17.7 percent from a year earlier, dwarfing the 4.0 percent rise forecast by economists and breaking a 13-month streak of year-on-year declines. Imports surged 55.9 percent, much more than the 31.0 percent increase markets had expected.

Crude oil prices slipped to $82.22 a barrel on forecasts for warmer U.S. weather ahead from last few weeks' freeze, after an earlier high near $84 a barrel.

DOLLAR & BONDS

A surge in Chinese exports increased optimism the global economy is recovering and boosted risk appetite, pushing investors to drop safe-haven dollars.

The dollar index <.DXY> fell 0.61 percent at 77.001. The euro rose 0.44 percent at $1.4519 having hit its highest level in more than three weeks at $1.4557. Against the Japanese yen, the dollar fell 0.57 percent at 92.08 from a previous session close of 92.610.

The U.S. currency also continued to be pressured after data on Friday showed U.S. employers cut 85,000 jobs last month, disappointing many in the market who had expected the U.S. economy to stop losing jobs. [ID:nN0747110].

"The combination of the weak jobs report last week and the realization that the Fed is going to keep rates low for a long time has put a stop to the recent dollar rally," said Vassili Serebriakov, a currency strategist, at Wells Fargo Bank.

Meanwhile, U.S. Treasuries traded mostly higher, as investors nibbled at low-risk assets due to weaker stock prices and solid demand at a $10 billion auction of government inflation-protected bonds.

Benchmark 10-year Treasuries were up 2/32 for a yield of 3.83 percent, down 1 basis point from late Thursday.

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares closed down 0.1 percent at 1,063.82 points, after touching a new 15-month high of 1,074.50.

Japanese markets were closed for the Coming of Age Day.