* Greece passes final austerity measures to secure funding
* US Midwest activity jumps, further boosting stocks
* Treasuries prices fall on Greece relief, end of QE2
By Walter Brandimarte
NEW YORK, June 30 (Reuters) - World stocks and the euro rose to their highest in three weeks on Thursday as Greece approved the final austerity measures to secure international funding and avoid bankruptcy.
An unexpected jump in business activity in the U.S. Midwest further pushed investors into stocks and out of safe-haven U.S. government bonds. For details, see [ID:nN9E7HG00J].
Prices of U.S. Treasury bonds fell on the last day of the quarter, which also marks the end of the Federal Reserve's bond-buying program. Speculation that Greece would pass its austerity plans had sparked a selloff in Treasuries earlier this week.
The Greek parliament approved detailed austerity and privatization bills required by the European Union and the International Monetary Fund in exchange for funding. [ID:nL6E7HU0SS]
"By delaying the problem we can have a party in the interim," said Andy Lynch, fund manager at Schroders, which manages 197 billion pounds. "The market is ignoring the inevitable that at some point Greece will have to admit that it can't pay back its debt."
The MSCI All-Country World Index <.MIWD00000PUS> climbed 0.95 percent in its fourth session of gains to its highest level since June 2. In Europe, the FTSEurofirst 300 index <.FTEU3> of top shares gained 0.72 percent.
Key Wall Street stock indexes opened higher and added to gains later.
The Dow Jones industrial average <.DJI> was up 116.21 points, or 0.95 percent, at 12,377.63, while The Standard & Poor's 500 Index <.SPX> rose 8.99 points, or 0.69 percent, to 1,316.40. The Nasdaq Composite Index <.IXIC> was up 23.61 points, or 0.86 percent, at 2,764.10.
The euro
Despite the boost from a weaker dollar, ICE Brent crude