By Herbert Lash

NEW YORK (Reuters) - Global stocks rose and bonds weakened on Monday after a U.S. home improvement retailer's profit spurred hopes an economic recovery may be closer than previously thought, boosting risk appetite.

The rally in equities -- European stocks surged more than 2 percent while U.S. shares jumped about 3 percent -- and rising oil fuelled the view that the global downturn may be slowing.

Crude prices rose nearly 5 percent to a six-month high as violence in top African top crude exporter Nigeria and a fire at a key U.S. East Coast refinery revived supply concerns.

The equity surge and an initially weaker dollar also helped spur oil's gains.

The U.S. dollar rose against the yen after comments by a top official in Japan spurred speculation of intervention by authorities to curb further strength in the Japanese currency.

Treasury debt prices eased as U.S. and European stocks rallied, slamming demand for safe-haven government bonds.

"We begin to see evidence that we're moving from a slower rate of negative change to positive growth, and I think there is more room for this to run on the upside," said Craig Hester, chief executive of Hester Capital Management in Austin, Texas.

Lowe's Cos Inc (LOW.N: Quote, Profile, Research), the second largest U.S. home improvement store chain, reported stronger-than-expected quarterly profit and raised its full-year forecast, boosting shares in the housing and retail sectors.