* Search for yields drives Asia higher
* Wall St expected to open slightly higher
* Sterling falls vs dollar on prospect of easier policy
* Oil up on prospect of producers' meeting
By Nigel Stephenson
LONDON, Aug 9 (Reuters) - World stocks hit their highest levels in almost a year as investors searched for yield, while sterling fell to its weakest in a month on the prospect of easier monetary policy after Britain's vote to leave the European Union.
Wall Street was set to open modestly higher, according to index futures ESc1 1YMc1 .
Ian McCafferty, a prominent Bank of England policy hawk, told The Times newspaper that, if the UK economy slowed as much as sentiment surveys have suggested, more easing would be required on top of the measures unveiled by the Bank last week.
That was enough to push sterling as low as $1.2968 GBP= , its weakest since July 11. It last traded at $1.2983, down 0.4 percent on the day.
But the picture was complicated by data from the British Retail Consortium showing the biggest rise in retail spending in Britain in six months in July.
"McCafferty really underlined the dovishness of the MPC last week," said Jane Foley, a strategist with Rabobank in London. "But (reading the BRC data) consumers do seem to have been more robust than many had anticipated."
The BoE cut interest rates last week for the first time since 2009 to cushion the economic shock of the Brexit vote, and Australia cut its rates to a record low. New Zealand is widely expected to cut on Thursday. blue-chip share index .FTSE rose 0.3 percent, in line with a 0.4 percent rise in the pan-European STOXX 600 index .STOXX . This lifted MSCI's all-country world index .MIWD00000PUS by 0.2 percent to a peak of 417.80 points, its highest since Aug. 19, 2015.
The European index was led higher by autos .SXAP and banks .SX7P and by forecast-beating company earnings.
Overall, the second-quarter earnings season has been encouraging so far. Of the 77 percent of STOXX 600 companies that have reported second-quarter results, 61 percent have met or beaten expectations, according to StarMine data.
"European earnings are surprising on the positive side, which is a confirmation of solid economic developments in Europe. However, the second half may not be as good due to uncertainties related to Brexit and some other political issues in Europe," UniCredit strategist Christian Stocker said.
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Earlier, Asian shares hit one-year highs as a global search for yield drove a record inflow into emerging market funds.
Analysts at Bank of America Merrill Lynch (NYSE:BAC) said last week the search had led to the largest five-week inflow on record to emerging market debt funds and the longest inflow streak to equity funds in two years. broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.3 percent, having already risen for three sessions in a row.
Japan's Nikkei .N225 closed 0.7 percent high, rising for the fourth straight session.
Chinese shares rose .SSEC 0.5 percent after July inflation data kept alive the prospect of easier monetary policy. Consumer price slowed compared with June while a long decline in producer prices moderated. DIPS
The dollar dipped against a basket of major currencies .DXY , reversing earlier gains on slightly raised chances of higher Federal Reserve interest rates this year after Friday's stronger-than-expected U.S. jobs data.
The yen JPY= edged up 0.2 percent to 102.19 per dollar while the euro EUR= slipped 0.1 percent to $1.1075.
Oil prices rose on forecasts of a drop in U.S. inventories and speculation of producer action to prop up prices. Brent LCOc1 , the international benchmark, rose 14 cents to $45.53 a barrel.
"One can only wonder how long this enthusiasm will last considering the oversupplied fundamental backdrop," said Tamas Varga of oil broker PVM. "Current oil price strength does not feel justified."