* Global stocks up on Japan, Wells Fargo, US data
* Patchy signs of economic recovery trigger oil gains
* Dollar up versus basket of currencies, down against euro
By Sebastian Tong
LONDON, April 9 (Reuters) - Global equities rose on Thursday in light trading ahead of the Easter holiday weekend as investors sought further signs of optimism in the financial crisis that has hit economies from Australia to Ireland.
Japan's larger-than-expected $154 billion plan to jump-start its slowing economy underpinned appetite for equities while better-than-expected figures from the U.S. on its trade deficit and new claims from jobless U.S. workers provided a midday boost.
An announcement by U.S. lender Wells Fargo of record first quarter earnings also helped steady sentiment.
The MSCI's all-country world equities index rose more than 1 percent higher by 1240 GMT, staying on track for its first weekly loss in five weeks.
The pan-European FTSEurofirst 300 index was up 1 percent, shrugging off the Bank of England's decision to leave interest rates unchanged at a record low of 0.5 percent but underperforming Asian shareswhich rose some 3 percent, back towards a six-month high.
Emerging stocks remained outperformers, rising over 2.5 percent towards a six-month high hit earlier this week.
"With the earnings season yet to enter full swing, the market is still willing to give risk appetite the benefit of the doubt," said Geoffrey Yu, currency strategist at UBS.
Despite the better-than-expected Wells Fargo earnings, banks from New York to Tokyo face asset sales, capital raising and government takeover as the financial crisis set off by the U.S. subprime mortgage market continues to take its toll.
On Thursday, Germany offered to take over stricken Munich-based lender Hypo Real Estate. This comes a day after Ireland said it may end up with majority stakes in its banks if their property losses require further capital injection. appetite is driving investors to seize on opportunities to sell gold to buy other assets such as shares.
SHORT-TERM POSITIVE
Recent economic data remains weak. Canada and Australia posted their highest jobless rates in years while German industrial production fell for its six month in a row.
On Wednesday, the U.S. Federal Reserve lowered its GDP growth projections.
Against this gloomy backdrop, there are incipient signs of economic recovery.
Japanese machinery orders, seen as a leading indicator of corporate spending, unexpectedly rose in February while a pair of recent business surveys suggested a rebound on the horizon for China.
"Together with increasing signs of production stabilisation and inventory adjustment, short-term growth momentum should remain positive," said Goldman Sachs in a client note.
Indicators of global economic recovery -- however patchy -- were enough to trigger gains in oil.
U.S. light crude rose nearly $2 higher to trade at more than $51 a barrel.
The dollar was flat against a basket of currencies following the release of figures showing a shrinking of the U.S. trade deficit to its smallest since November 1999.
The greenback recovered from session lows against the euro after European Central Bank President Jean-Claude Trichet said the central bank had leeway to cut its main interest rate.
Gold slipped from a high of $886 per ounce to be bid at around $877 with improved risk appetite seen spurring investors to sell the metal to buy equities.
Emerging sovereign spreads narrowed 11 basis points to trade at 564 bps above U.S. Treasuries. (Additional reporting by Joanne Pearson and Naomi Tajitsu; Editing by Victoria Main)