World stocks extended gains and oil rebounded on Friday as upbeat data from China and the United States underscored an economic recovery, weighing on safe-haven government bonds and the low-yielding yen.

China's industrial output accelerated in November to a higher-than-expected 19.2 percent from a year earlier, its fastest pace since June 2007. Imports surged 26.7 percent, their first rise in 13 months.

On Thursday Wall Street rose after signs of improving trends in the job market and a decline in U.S. October trade deficit reassured investors the economy was on a steady growth path.

Risk is back on. But it's a bit difficult to get too excited, said Niels Christensen, currency strategist at Nordea in Copenhagen. MSCI world equity index <.MIWD00000PUS> rose 0.5 percent, still off its 14-month high set earlier this month.

The FTSEurofirst 300 index <.FTEU3> bounced 0.9 percent, led by gains in basic resource shares.

Emerging stocks <.MSCIEF> gained 0.7 percent.

U.S. crude oil rose 0.7 percent to $71.02 a barrel.

Bund futures fell 25 ticks, erasing gains made after investors flocked to the perceived safety of German bonds following a downgrade in Greece's credit rating and a cut in Spain's rating outlook.

The Greek and German 10-year government bond yield spread narrowed to 206 basis points from around 230 bps late on Thursday.

French economy minister Christine Lagarde said Greece could rely on its euro zone partners as it confronts its debt crisis, adding however they expected Athens to get its public finances into order.

The dollar <.DXY> was steady against a basket of major currencies, while the yen fell 0.6 percent to 88.84 per dollar.

Sterling rose 0.2 percent to $1.6317 after Moody's said Britain's triple-A rating is under no threat of a downgrade right now.

The British currency has been under pressure on concerns about a ballooning domestic fiscal deficit and the prospect of low interest rates well into next year.

(Additional reporting by Jamie McGeever; editing by Chris Pizzey)