* Europe gains as travel stocks jump nearly 6%
* Nikkei rises 2.2% to highest since early March
* S&P 500 futures climb 1.8% to clear 3,000 hurdle
* China central bank says to strengthen economic policy
* Oil gains as supply falls, U.S. rigs hit all-time low
* World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Marc Jones and Wayne Cole
LONDON/SYDNEY, May 26 (Reuters) - World shares forged ahead on Tuesday and commodity markets drove higher as well, as investors disregarded Sino-U.S. tensions to focus on more stimulus in China and a re-opening world economy.
Britain's FTSE .FTSE and Japan's Nikkei .N225 led their regions with 2.2% gains, while U.S. S&P 500 futures ESc1 cleared the 3,000 level for the first time since early March, when the economic impact of the coronavirus was just becoming clear. .EU .N .T
Europe's early spurt saw the STOXX 600 .STOXX score a near 11-week high. Travel and leisure stocks jumped almost 6% .SXTP after Spain had said quarantine-free tourism would resume next month and Germany edged towards a 9 billion-euro bailout of airline Lufthansa. Spanish and other southern euro zone government bonds gained GVD/EUR and a weaker dollar helped the euro, the pound, and holiday-hotspot currencies like Turkey's lira /FRX
"Investors are trying to be optimistic here and think that everything is going to be OK," said Christopher Peel, the chief investment officer of Tavistock Wealth. "You can't fight it ... I'm not trying to fight it. But it is totally disconnected from economic reality."
Overnight saw another high-profile casualty of coronavirus as Latin America's largest airline, LATAM Airlines Group LTM.SN and its affiliates in Chile, Peru, Colombia, Ecuador filed for bankruptcy protection in the United States. The car- rental firm Hertz HTZ.N had done the same on Friday.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had advanced 1.7% overnight.
South Korea .KS11 closed up 1.75% and Chinese blue chips .CSI300 ended 1.1% higher after the country's central bank said it would strengthen economic policy and continue to push to lower interest rates on loans. largely reiterations of past comments, they helped offset the war of words between Washington and Beijing over trade, the coronavirus and China's proposals for stricter security laws in Hong Kong. tensions continue to simmer in the background, but equity investors appear more interested on the prospect of economies reopening around the globe," said Rodrigo Catril, a senior FX strategist at NAB.
"On this score, Japan ended its nationwide state of emergency, Spaniards have returned to bars in Madrid wearing masks and England will re-open some businesses on June 1."
In addition, Germany wants to end a travel warning for tourist trips to 31 European countries from June 15 if the coronavirus situation allows, the news agency dpa reported. investors suspect economies will still need massive amounts of central bank support long after they re-open and that is keeping yields low even as governments borrow much more.
Yields on U.S. 10-year notes US10YT=RR were trading at 0.67% after rising to 0.68% last week, when the market absorbed a wave of new issuance.
The decline in U.S. yields might have weighed on the dollar but with rates everywhere near or less than zero, major currencies have been holding to tight ranges.
The dollar was up against the yen at 107.80 JPY= , still within the 105.97 to 108.08 band that has lasted since the start of May. The euro gained to $1.0939 EUR= , having spent the month so far between $1.0765 and $1.1017.
Against a basket of currencies the dollar was 0.2% lower at 99.620 =USD , but still sandwiched between support at 99.001 and resistance around 100.560.
Analysts at CBA felt the dollar could break higher should China-U.S. tensions actually threaten their trade deal.
"Although not our central scenario, if the U.S. or China were to withdraw from the Phase One deal, USD would sharply appreciate while CNH, AUD and NZD would decline," they wrote in a note to clients.
In commodity markets, gold edged up 0.2% to $1,733 an ounce XAU= . GOL/
Oil prices were supported by falling supplies as OPEC cut production and the number of U.S. and Canadian rigs dropped to record lows for the third week running. O/R
Brent crude LCOc1 futures rose 71 cents to $36.24 a barrel. U.S. crude CLc1 gained $1.14 to $34.39.
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