* MSCI world equity index up 0.7 percent at 314.74
* Fed minutes, Intel results fan risk appetite
* Dollar, government bonds fall; oil rises
By Natsuko Waki
LONDON, Oct 13 (Reuters) - World stocks hit a five-month high on Wednesday while emerging market equities held near a recent 27-month peak, driven by expectations of more money printing in the United States and upbeat corporate reports. Minutes from the Federal Reserve's September meeting showed officials discussed the possibility of buying more longer-term U.S. government debt to drive borrowing costs lower and ways to nudge the public into expecting higher levels of inflation in the future to spur spending [ID:nN12188145].
U.S. technology firm Intel's (INTC.O) upbeat fourth-quarter sales and margins forecast raised hopes that the technology sector could end 2010 on a strong note.
The prospect of more cheap money and expectations that corporate earnings would improve further encouraged investors to buy risky assets such as equities while pushing the dollar towards an eight-month low against the euro.
"We saw from the FOMC minutes that there is little doubt that a further round of (quantitative easing) is likely to happen at the next meeting," David Morrison, market strategist at GFT Global said.
"That is weakening the dollar and ... it's risk-on and everything gets bought."
The MSCI world equity index .MIWD00000PUS rose 0.7 percent on the day to hit its highest level since April, bringing its gains this year to more than five percent.
The Thomson Reuters global stock index .TRXFLDGLPU was also up 0.7 percent. U.S. stock futures rose 0.7 percent SPc1, pointing to a firmer open on Wall Street later.
The FTSEurofirst 300 index .FTEU3 gained one percent while emerging stocks .MSCIEF rose more than one percent, closing in on recent 27-month highs.
U.S. crude oil CLc1 rose 1.5 percent to $82.87 a barrel after data showed China, which surpassed the United States as the world's biggest energy user, set a record 35 percent increase in September crude oil imports from a year earlier.
Actions of further policy easing in the United States and a weaker dollar also burnished the appeal of commodities for investors.
