GLOBAL MARKETS-World stocks hit near 2-1/2-yr high; dollar falls

* MSCI world equity index hits highest since Aug 2008

* Strong earnings boost recovery optimism

* Dollar hits 8-week lows; euro, oil rise

By Natsuko Waki

LONDON, Jan 19 (Reuters) - World stocks hit their highest in nearly 2-1/2 years on Wednesday and the dollar fell to 8-week lows as strong fourth-quarter corporate earnings boosted confidence the world economic recovery would gather momentum.

Apple Inc released strong results and an upbeat outlook on dazzling sales of the iPhone and iPad, while International Business Machines Corp <IBM.N> reported better than expected quarterly profit. [ID:nN18171874] [ID:nN18146899]

Good results from ASML <ASML.AS> are also likely to boost the outlook for the tech sector after the Dutch firm reported an eight-fold rise in profit on Wednesday. [ID:nLDE70H21L]

"The corporate sector is doing better than the economy and will be even more so going forward," said Kevin Gardiner, head of global investment strategy at Barclays Wealth. "We liked emerging markets to begin with, we're now adding developed." The MSCI world equity index <.MIWD00000PUS> was up 0.3 percent, having hit its highest level since August 2008. The Thomson Reuters global stock index <.TRXFLDGLPU> also rose 0.3 percent.

The FTSEurofirst 300 index <.FTEU3> fell 0.3 percent as investors grew concerned the index was getting overbought after a strong run. Emerging stocks <.MSCIEF> gained 0.6 percent.

"Equities are the only game in town, consumer spending is on the march as shown by strong numbers from Apple and IBM," said David Buik, senior partner at BGC Partners.

According to Thomson Reuters data, 61 percent of S&P 500 companies <.SPX> that have reported earnings beat expectations. Earnings growth among S&P 500 companies is expected at 32.2 percent in the fourth quarter.

U.S. crude oil <CLc1> rose 0.6 percent to $91.90 a barrel, helped in part by a weaker dollar and concerns over disruptions in North Sea crude supplies.

The dollar fell to an eight-week low against a basket of major currencies <.DXY> while buying from Asian sovereign institutions pushed the euro up 0.7 percent to $1.3505 <EUR=>.

Bund futures <FGBLc1> rose 8 ticks, trimming earlier gains as a German newspaper report that Germany was considering a debt restructuring plan which would allow Greece to buy back its own debt.

The report, citing unnamed government sources, said the plan was to let Greece use credits from the European Financial Stability Facility (EFSF), in return for a commitment to pro-stability policies. [ID:nLDE70I0YD]

It was denied by both Greek and German government officials. (Editing by Mike Peacock)