GLOBAL MARKETS-Earnings drive stocks higher; euro, oil slips

* MSCI world equity index up 0.4 pct at 351.89

* Earnings optimism drive shares higher

* Euro down on Greek debt jitters

By Natsuko Waki

LONDON, May 11 (Reuters) - World stocks rose for a second straight day on Wednesday thanks to favourable U.S. and European corporate earnings, while the euro slipped on uncertainty over whether debt-laden Greece would need additional financial aid.

Oil prices and the euro dipped after China's April inflation came in slightly above expectations, but other data, including industrial output, suggested slower activity and less room for aggressive tightening to curb growth. [ID:nL3E7GB0H2]

British supermarket group J Sainsbury rose after it met full-year forecasts [ID:nLDE74A08M] while Belgian-French financial group Dexia rose after a smaller-than-expected decline in profits. [ID:nLDE74A03J]

"The corporate news has generally been very positive," said Justin Urquhart Stewart, director at Seven Investment Management.

"You can see a trail of issues such as U.S. debt, the end of QE2, sorting out the euro, but for the time being, people are enjoying a corporate spring." MSCI's world equity index <.MIWD00000PUS> gained 0.4 percent, coming within 10 points of last week's three-year high.

The Thomson Reuters global stock index <.TRXFLDGLPU> rose 0.3 percent. U.S. stock futures rose 0.1 percent , pointing to a firmer open on Wall Street.

Thomson Reuters data show firms on the S&P 500 <.SPX> grew their earnings by 18.4 percent in the first quarter, with nearly 90 percent of them having reported their results.

The FTSEurofirst 300 index <.FTEU3> and emerging stocks <.MSCIEF> both rose 0.7 percent.

U.S. crude oil fell 0.7 percent to $103.18 a barrel, having suffered its worst weekly sell-off on record last week, as focus shifted to signs that the Chinese economy is cooling.

The Bund futures fell 32 ticks.

Speculation as to whether Greece will receive more bailout funding was likely to keep peripheral trading volatile, as investors continue to price in a high probability that the country will eventually need to restructure its debt.

EU finance ministers will discuss Greece's debt crisis next week but will not decide on new emergency aid until a mission to strike-hit Athens that began on Wednesday gives its verdict on progress on reforms. [ID:nLDE74A16A]

The dollar <.DXY> fell 0.1 percent against a basket of major currencies while the euro fell 0.1 percent to $1.4386 .

"Euro/dollar is being dominated by concerns about Greece and Portugal and the contagion concerns that triggered a selloff last week could see the common currency fall further," said Adam Myers, senior FX strategist at Credit Agricole.

The euro was also weighed down by comments from German deputy finance minister Joerg Asmussen, who said euro zone officials will debate Greece's debt crisis next week but no decision will be taken [ID:nLDE74A0JZ]. (Additional reporting by Brian Gorman; Editing by Catherine Evans)