GLOBAL MARKETS-Shares gain on China stimulus, Greece worries weigh on euro

* Solid (KOSDAQ: 050890.KQ - news) corporate results boost Wall Street shares

* Euro slips against dollar on Greece default worries

* Oil rises after report of strong U.S. inventory draw last week (Updates prices, changes byline, adds commentary)

By Sinead Carew

NEW YORK, April 20 (Reuters) - Equity markets snapped back on Monday after China took steps to stimulate its economy, while the euro weakened amid worries about Greece and oil rose on Middle East tension.

The Chinese central bank on Sunday cut the amount of cash banks must hold as reserves in its latest attempt to spur lending and combat a slowing economy. The news followed reports last week about a crackdown on margin lending there, which had sent global equity markets lower on Friday.

"China was part of a two-pronged news event that caused part of the selloff on Friday. The move over the weekend changed that perspective and caused a little bit of a boost today," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin.

Wall Street received additional support as some U.S. companies reported solid quarterly earnings.

The dollar rose as the euro slid against the greenback amid gathering concerns Greece could default on its debt or leave the single currency within months.

Coming off its worst weekly performance in a month, the dollar also gained against the Japanese yen and the British pound.

The European Central Bank's vice president said on Monday that a country that defaults would not have to leave the euro, in frank remarks about Greece that also touched on possible capital controls and showed how acute Athens' problems have become.

The euro was down 0.48 percent at $1.0753 while the dollar rose 0.3 percent against a basket of major currencies.

In Europe, mining stocks rose on the stimulus measures in China, the world's biggest consumer of metals. The FTSE 350 mining index closed up 2 percent.

The pan-European FTSEurofirst 300 index of top regional shares gained 0.83 percent to 1,620.43 while MSCI (NYSE: MSCI - news) 's all-country world index was up 0.41 percent.

U.S. shares were boosted by investment bank Morgan Stanley (Xetra: 885836 - news) 's report of its most profitable quarter since the financial crisis. The bank's shares rose 1.1 percent to $37.16.

The Dow Jones industrial average rose 211.34 points, or 1.19 percent, to 18,037.64, the S&P 500 gained 19.4 points, or 0.93 percent, to 2,100.58 and the Nasdaq Composite added 56.85 points, or 1.15 percent, to 4,988.66.

Oil prices rose in volatile trading as a report of strong U.S. consumption last week and a warning from Saudi Arabia's Interior Ministry about possibly attacks on energy installations there offset earlier comments indicating Saudi production would stay near record levels in April.

Oil services firm Genscape reported a draw of more 900,000 barrels at the Cushing, Oklahoma delivery point for U.S. crude between Tuesday and Friday last week, market sources said. For the week to Friday, Genscape reported a build of about 350,000 barrels, they said.

Brent crude was up 21 cents at $63.67 a barrel after falling as low as $62.10 earlier in the day. U.S. crude for May delivery was up 81 cents at $56.55. (Additional reporting by Rodrigo Campos and Barani Krishnan in New York; Editing by James Dalgleish and Meredith Mazzilli)