(Adds U.S. market open, changes byline, dateline; previous LONDON)
* China shares surge after central bank pledges support
* Boeing shares plunge after Kenya crash
* U.S. Treasury yields rise as risk appetite returns
* Oil gains as Saudi minister stands by OPEC cuts
By Herbert Lash
NEW YORK, March 11 (Reuters) - Global equity markets surged on Monday, lifted by talk of more stimulus from China and by a broad rally on Wall Street that overcame a plunge in Boeing shares after one of its newest jets crashed, while U.S. debt yields rose on improved risk appetite.
China’s main bourse clawed back almost half the 4 percent lost on Friday as the country’s central bank chief pledged billions of dollars of cuts to taxes and fees to shore up an economy growing at its slowest pace in almost 30 years.
U.S. stocks followed strong gains in Europe with the benchmark S&P 500 and tech-heavy Nasdaq rising more than 1 percent after Wall Street posted losses every day last week.
“This market, it comes in waves. Everybody who missed the rally in January and February is looking to buy the dip,” said Dennis Dick, a proprietary trader who is head of market structure at Bright Trading LLC in Las Vegas.
“It’s buy the dip, it’s back,” Dick said.
The Dow rebounded after Boeing Co, easily the index’s best performing component this year, pared steep losses after many airlines grounded the company’s new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months.
Boeing shares dropped 7.2 percent.
The Dow Jones Industrial Average rose 87.88 points, or 0.35 percent, to 25,538.12. The S&P 500 gained 29.25 points, or 1.07 percent, to 2,772.32 and the Nasdaq Composite added 109.49 points, or 1.48 percent, to 7,517.63.
The FTSEurofirst 300 index of leading regional shares rose 0.63 percent, while MSCI’s gauge of stocks across the globe gained 0.93 percent.
In China, the Shanghai Composite index rose 1.92 percent and the blue-chip CSI300 gained 1.98 percent.
The dollar eased after mixed U.S. retail sales data and sterling jumped as investors braced for parliamentary votes on Prime Minister Theresa May’s Brexit deal that could decide the terms on which Britain leaves the European Union.
May’s failure to win last-minute concessions from the European bloc regarding the Irish border set the stage for another humiliating defeat in parliament.
Sterling fell in early trade but later erased its losses to trade at $1.3084, up 0.53 percent on the day.
The dollar index fell 0.01 percent, with the euro down 0.03 percent to $1.1235. The Japanese yen weakened 0.07 percent versus the greenback at 111.21 per dollar.
Norway’s crown gained after strong inflation data raised interest rate hike expectations, with some strategists saying a March move by the Norges Bank was a done deal.
With market volatility low, investors have rushed to buy currencies where central banks are still raising rates or economic data has pointed to a brighter economic outlook.
The benchmark 10-year U.S. Treasury note fell 5/32 in price to yield 2.6411 percent.
Oil prices rose 1 percent on Monday, lifted by comments from Saudi Energy Minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June.
U.S. crude rose 75 cents to $56.82 per barrel and Brent gained 81 cents to $66.55.
Reporting by Herbert Lash in New York Editing by James Dalgleish