* China's yuan surges to 16-month high on economic data
* Gold slips as dollar rebounds, all eyes on Fed
* Oil rises but bleaker demand outlook weighs
* Central bank meetings dominate week's agenda
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
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By Herbert Lash
NEW YORK, Sept 15 (Reuters) - World stock markets rose on Tuesday, first on upbeat Chinese data and later on a solid increase in U.S. factory output, while the dollar see-sawed on expectations the Federal Reserve will keep a downbeat economic outlook when policymakers meet this week.
Gold retreated and investors drove longer-term U.S. Treasury yields higher, steepening the yield curve, as the Fed began a two-day meeting.
The euro gained after the ZEW economic sentiment survey showed investor sentiment in Germany rose in September, despite headwinds from Brexit and rising coronavirus infections. factory output increased strongly last month, while U.S. import prices rose more than expected, supporting the view that inflation pressures were building. showed Chinese industrial output accelerated the most in eight months in August, up 5.6%, to spark a jump in the yuan CNH= to a 16-month high. Retail sales in China also grew for the first time this year, beating forecasts. is an economic winner at this point in the pandemic," said Kit Juckes, head of FX strategy at Societe Generale (PA:SOGN).
Commodity-linked currencies such as the Australian AUD=D3 , New Zealand NZD=D3 , and Canadian dollars CAD=D3 gained after the positive Chinese data.
MSCI's all-country world index .MIWD00000PUS rose 0.75% to 576.99, while Europe's broad FTSEurofirst 300 index .FTEU3 added 0.71% to 1,439.08.
On Wall Street, the Dow Jones Industrial Average .DJI rose 0.41%, the S&P 500 .SPX gained 0.94% and the Nasdaq Composite .IXIC added 1.55%.
The S&P tech index .SPLRCT jumped 1.6% as it recovered for a second day from a plunge at the end of last week that had knocked the Nasdaq into corrective territory, defined as a 10% slide from a recent peak.
MSCI's emerging markets index .MSCIEF rose 0.71%.
Euro zone bond yields were steady to a bit lower, shrugging off the positive economic sentiment data from Germany and the improvement in risk appetite that lifted global stock markets.
The dollar index =USD rose 0.043%, with the euro EUR= down 0.15% to $1.185.
The Japanese yen JPY= strengthened 0.24% versus the greenback at 105.47 per dollar.
SUGA RUSH
Overnight, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.5%, for a fourth straight day of gains that have boosted it 3% for the year after its recent reversal from its coronavirus plunge.
In commodity markets, most industrial metals were bolstered by the robust Chinese data. MET/L
Oil prices rose, supported by hurricane supply disruptions in the United States, but forecasts of a slower-than-expected recovery in global demand from the pandemic weighed.
Brent crude futures LCOc1 rose $0.69, to $40.3 a barrel. U.S. crude futures CLc1 gained $0.77, to $38.03 a barrel.
Gold slipped from a near-two week high as the dollar rose, although hopes for a dovish monetary policy stance from the U.S. Federal Reserve limited the safe-haven metals' losses.
Spot gold prices XAU= fell 0.16% to $1,953.27 an ounce.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Yuan gaining against dollar again
https://tmsnrt.rs/2GZegrX
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional Reporting by Anshuman Daga in Singapore; Editing by Ana Nicolaci da Costa and Dan Grebler)