GLOBAL MARKETS-Hopes for last-ditch Greek deal lift global stocks

(Refiles with new headline)

* Greece, creditors hold last-minute talks

* European stocks jump, peripheral yields fall

* But it could be a long week

By Jamie McGeever

LONDON, June 22 (Reuters) - Global stocks and peripheral euro zone bonds rose on Monday, lifted by hopes that crunch meetings in Brussels between Greece and its international creditors can still produce a last-minute deal to help Athens avert default.

German stocks rose as much as 3.5 percent, the 10-year yield on Spanish and Italian bonds fell as much as 14 basis points, and U.S. stocks were called to open up 0.7 percent.

Greek Prime Minister Alexis Tsipras met the heads of the European Commission, European Central Bank and International Monetary Fund on Monday ahead of an emergency summit of euro zone leaders aimed at reaching a deal over debt talks.

The chief-of-staff to European Commission President Jean-Claude Juncker called the latest proposals from Greece a "good basis for progress", while EU Economic Commissioner Pierre Moscovici said he was "convinced" agreement will be reached.

Spain's finance minister Luis de Guindos said a deal was not possible on Monday, however, meaning it may be the scheduled leaders summit on Thursday before any agreement is reached.

Investors appeared willing to give the protagonists in the saga the benefit of the doubt.

"The odds seem to shift in favour of a compromise," said Rainer Guntermann, rates strategist at Commerzbank (Xetra: CBK100 - news) .

At mid-session in Europe, Germany's DAX and France's CAC 40 were up 2.8 percent at 11,353 points and 4,949 points, respectively, with Britain's FTSE 100 up 1.3 percent at 6,796 points.

Greek stocks were 6 percent higher, while Greek bank shares surged 16 percent.

The broader EuroFirst300 index of leading European shares was up 1.7 percent at 1,555 points, with prices also boosted by merger and acquisition activity.

In Asia, MSCI (NYSE: MSCI - news) 's broadest index of Asia-Pacific shares outside Japan rose 0.9 percent, its biggest rise in more than two months, while Japan's Nikkei stock index added 1.3 percent.

Chinese mainland markets were closed on Monday for a holiday, after posting their biggest weekly loss since 2008 last week.

SUNNY DAY?

In bond markets, Spanish and Italian 10-year yields were both down around 10 basis points at 2.19 percent, the lowest in 10 days.

The flip side of investors' renewed appetite for risk was a fall in safe-haven German bonds, which pushed the 10-year Bund yield up around 10 basis points to 85 basis points, a 10-day high.

Many investors were still cautious about Prime Minister Tsipras' proposals, however, because it was not immediately clear how far they yielded to creditors' demands for additional spending cuts and tax hikes, nor whether creditors can stomach the offer.

Athens is running out of cash to repay a 1.6 billion euro IMF loan due at the end of the month unless it secures new financing from international creditors.

Speculation is rife that, if no deal were reached on Monday, Greece would need to impose capital controls on Tuesday to avert a banking crisis as savers keep withdrawing funds from banks.

The ECB on Monday raised the ceiling on emergency liquidity Greek banks can draw from the country's central bank for a third time in six days.

Bank of Greece Governor Yannis Stournaras met senior bankers on Friday and told them to brace for a "difficult day" on Tuesday if no deal is reached, two bankers at the meeting told Reuters.

"The market is preparing for a relief rally regardless of good or bad news out of Greece," said Ipek Ozkardeskaya, market analyst at London Capital Group.

"Either way, the clouds of uncertainty should dissipate to provide more visibility across the market. Whether a thundery or a sunny day, investors need to know what to wear."

The euro rose as much as half a percent earlier in the global session to trade above $1.14, before easing back to flat on the day at $1.1355. On Thursday last week, it hit a one-month high of $1.1440.

The dollar was up 0.5 percent against the yen at 123.25 yen , and up slightly on a trade-weighted basis. The dollar index was last trading at 94.2.

In commodities trading, crude oil futures rose. Brent crude was up 0.9 percent at $63.57 a barrel, while U.S. crude futures was up 0.7 percent at $60.02. (Additional reporting by Hideyuki Sano and Lisa Twaronite in Tokyo and Lionel Laurent and Marius Zaharia in London; Editing by Catherine Evans; To read Reuters Global Investing Blog click on http://blogs.reuters.com/globalinvesting; for the MacroScope Blog click on http://blogs.reuters.com/macroscope; for Hedge Fund Blog Hub click on http://blogs.reuters.com/hedgehub)