GLOBAL MARKETS-Shares up on China growth relief; dollar slips

* China GDP grows 7.4 pct, slightly ahead of forecasts

* European shares rebound, Wall Street rallies, Yahoo (TLO: YA-U.TI - news) shines

* Oil rises close to $110 on mounting Ukraine tension

(Adds close of European bond and stock markets, Yellen comment)

By Herbert Lash

NEW YORK (Frankfurt: HX6.F - news) , April 16 (Reuters) - Global equity markets

advanced broadly on Wednesday after China reported growth that

beat expectations, providing relief to investors worried about

the Chinese economy, while the dollar slid on the growing view

the Federal Reserve will keep interest rates lower than normal

for a few years.

Fed Chair Janet Yellen told the Economic Club of New York

that achieving the U.S. central bank's economic goals "will

likely require low real interest rates for some time," a policy

view she said was shared broadly across many advanced economies.

Wall Street rallied for a third straight day. The Nasdaq

Composite was up 3.3 percent from its intraday low of 3,946.03

on Tuesday, which was a whisker away from a 20 percent

correction.

China's economy grew 7.4 percent in the first quarter from a

year earlier, topping forecasts of 7.3 percent. There had been

speculation that growth would be closer to 7 percent after a

string of recent soft numbers.

The relief rippled through Asian markets then spread to

Europe and Wall Street. Japan's Nikkei ended up 3

percent, its biggest gain since February.

MSCI (NYSE: MSCI - news) 's all-country world index rose 0.92

percent, while the FTSEurofirst 300 index of leading

European shares closed up 1.2 percent at 1,322.51 points. Yet

many traders pegged the gain as a technical rebound after a 1

percent decline in the previous session.

Earlier this month the European index hit a near six-year

high, a rally that has been halted by worries over the crisis in

Ukraine as well as worries about China, the world's second

biggest economy.

"There is a lot of concern about Chinese growth this year so

there is some relief in the GDP number," said Jim Russell,

senior investment strategist at U.S. Bank Wealth Management in

Cincinnati. "We think that is influencing the market today."

On Wall Street, the Dow Jones industrial average rose

130.76 points, or 0.8 percent, to 16,393.32. The S&P 500

gained 14.94 points, or 0.81 percent, to 1,857.92, and the

Nasdaq Composite added 41.79 points, or 1.04 percent, to

4,075.95.

Yahoo was the leading percentage gainer on the S&P

500 as investors focused on the company's 24 percent stake in

Chinese internet company Alibaba Group Holding Inc (IPO-ALIB.N),

which reported a surge in quarterly revenue growth in the last

quarter of 2013. Yahoo shares jumped 6.5 percent to $36.44.

Google (NasdaqGS: GOOG - news) and IBM (NYSE: IBM - news) will report quarterly

results later on Wednesday.

The euro rose 0.1 percent to $1.3826. There were also

more bond gains for former trouble spots Italy, Spain, Portugal

and Greece.

The 10-year U.S. Treasury note slipped 3/32 of a point in

price, boosting its yield to 2.6409 percent, as the growth in

China reduced demand for safe-haven government bonds.

But mounting risks in Ukraine after Russia declared the

country to be on the brink of civil war and Kiev said an

"anti-terrorist operation" against pro-Moscow separatists was

under way helped drive up oil prices.

Ukrainian government forces and pro-Russian rebels staged

rival shows of force in eastern Ukraine on Wednesday, though

hopes remained that talks in Switzerland on Thursday between

Ukraine, Russia, the U.S. and EU could cool the situation.

Global oil prices rose close to $110 a barrel, but gave up

some gains after an unexpectedly large build in crude stocks in

the United States, the world's largest consumer of oil.

Brent crude for June delivery rose by a dollar

earlier in the session but pared gains to trade 50 cents higher

at $109.86 a barrel.

U.S. crude for May delivery also rose more than $1,

but pared gains immediately after closely watched data form the

U.S. Energy Information Administration (EIA) to trade down 32

cents at $103.43 a barrel.

(Additional reporting by Marc Jones in London; Editing by

Meredith Mazzilli and Leslie Adler)