* Oil up 3.8 percent on G20 hopes, Saudi move, weaker dollar *China spending boost lifts metals markets sharply * Gold rises 1.5 pct as dollar extends falls versus euro By Clarence Fernandez SINGAPORE, Nov 10 (Reuters) - Commodity markets surged on Monday as demand hopes brightened following China's $600 billion stimulus plan and pledges by the G20 group of nations to take all necessary steps to put financial markets back on their feet. Oil leapt 3.8 percent, gold rose 1.5 percent and London copper 8 percent, helped by a weaker dollar and hopes that plans to lift growth in the world's largest economies could avert recession. "The proposals made at the G20 meeting and the relief package out of China really helped the markets this morning," said Mark Pervan, a senior commodities analyst at the Australia & New Zealand Bank. "The message over the weekend was supportive and it is clear that governments around the world will do all it takes to prevent a deep global recession." Finance ministers and central bankers representing 90 percent of the global economy gathering at the G20 group's annual meeting in Brazil promised to take all steps needed to revive financial markets and defuse the credit crisis. China went a step further and launched a huge stimulus plan on Sunday worth nearly $600 billion, kicking off what could be a round of big spending or interest rate cuts by leading economies to stave off a recession in many countries Japan's benchmark Nikkei rose 5.5 percent on Monday, with the MSCI index of Asia-Pacific stocks outside of Japan up 3.5 percent, largely reflecting hopes that China's spending plan could offset slowing economies in the United States and Europe. Spot gold stood at $745.55 an ounce by 0542 GMT, up 1.5 percent from a notional close in New York of $734.80 on Friday, as a fall in the dollar against the euro increased its appeal as an alternative asset. U.S. light crude for December delivery rose $2.32, or 3.8 percent, to $63.36 a barrel, after rising as much as $3.26. Saudi Arabia has told refiners in Asia it will cut December supplies by 5 percent, in the most visible evidence yet that it is adhering to OPEC's agreement last month to reduce output. Hopes for rising demand triggered by China's stimulus plan helped to boost prices of base metals and grains. London Metal Exchange copper rallied to $4,035 a tonne by 0407 GMT on Monday, up 7.5 percent from Friday. LME zinc rose 5.4 percent to $1,150 and lead added 4.7 percent to $1,425. Earlier copper jumped as much as 8.4 percent, while nickel was as high as $12,250, an 11.6 percent rise. Chicago Board of Trade soybeans for November delivery gained 20-¾ cents to $9.32-½ per bushel, December corn gained 1.8 percent to $3.82-1/4, and wheat for December delivery added 1.06 percent to $5.26-½ per bushel. The rises came ahead of Monday's release of a U.S. Department of Agriculture monthly crop report expected to show a drop in U.S. soybean production estimates but a rise in corn estimates. While China's plan could shore up market fundamentals, with huge investments earmarked for infrastructure, transport and construction, Yang Yongbin, a senior researcher at HNA Topwin Futures, struck a cautionary note. "The global economy is still in a downtrend...and we will not have a clear idea of direction until the second half of next year," he added. (Additional reporting by Bruce Hextall in SYDNEY, Risa Maeda in TOKYO, Nick Trevethan in SINGAPORE and Fayen Wong in PERTH; Editing by Michael Urquhart)

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