* EM, European shares rise to put world index near one-year
* AUD climbs on RBA decision to hold rate at record-low 1.5
* Nikkei closes up 0.3 percent as dollar strengthens
* Oil prices in tighter range after $3 move
* Oil gains on Russian, Saudi agreement to stabilize market
By Marc Jones
LONDON, Sept 6 World shares closed in on
one-year highs on Tuesday as the prospect of prolonged cheap
borrowing costs and a recent rise in oil prices set off a new
emerging market bull run.
Asian stocks reached one-year highs overnight and MSCI's
46-country 'All World' index was close as most
of Europe's markets climbed 0.1 to 0.3 percent higher.
Britain's FTSE 100 was the laggard, spending a
second day in the red, as sterling's slow recovery after
the country voted to leave the European Union left investors
looking at companies' competitiveness again.
Emerging markets had no such worries. A gain of nearly 0.8
percent for the main emerging market stock index took
its rise over the last three trading days past 3 percent and put
it up more than a third since January.
The latest advance came as the prospect of a U.S. interest
rate rise was pushed back by weak jobs data on Friday. Rising
oil prices helped oil-rich emerging markets such as Mexico,
Brazil and Russia.
(EM stocks performance in 2016 link.reuters.com/weh36s)
"Emerging markets have continued to rally, supported by a
rise in commodity prices and continued expectations that the Fed
will remain dovish," said Standard Life Investment's Alex Wolf.
"In addition, there are some fundamental improvements -
August sales improved across many companies and PMI data showed
stabilization in China."
Oil markets were calmer, after prices surged, then slid on
Monday, when Russia and Saudi Arabia confirmed they had agreed
to cooperate to stabilise the oil market, although they offered
no immediate plan of action.
U.S. crude was up 50 cents at just over $45 a barrel.
Brent crude was down at $47.32, having swung from $46.40
to $49.40 the previous session.
The U.S. dollar barely budged against the yen, at 103.67 yen
, but fell for a fifth day against the pound and
eased to 1.1166 per euro.
Australia's dollar jumped almost 1 percent to
$0.7655 after the country's central bank said little on the
currency's 10 percent rise since January and kept Aussie
interest rates at 1.5 percent.
"One perhaps could have expected some more discussion of the
currency, but we probably need to get back above 0.80 for verbal
invention to come back into flavour," said Tobias Davis, head of
corporate treasury sales with Western Union in London.
Australian shares slipped 0.4 percent after the
RBA's decision, but MSCI's broadest index of Asia-Pacific shares
outside Japan extended its recent gains to set a
new one-year high overnight.
Japan's Nikkei stock index closed up 0.3 percent as
the yen gave up some gains from Monday, when Bank of
Japan Governor Haruhiko Kuroda shied away from detailed talk of
fresh BOJ stimulus.
European bonds were buoyant. Spanish government bond yields
slipped below 1 percent, continuing a strong performance that
defies growing political uncertainty in Spain. German Bund
yields fell to minus 0.059 percent.
For Reuters new Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Patrick Graham, editing by Larry King)