Global stocks rose and the dollar fell on Monday after the Group of 20 pledged to keep stimulus in place until recovery was assured, following data on Friday showing the U.S. unemployment rate rose to a 26-year high.

The MSCI world equity index <.MIWD00000PUS> rose 0.8 percent in early London trade while European shares <.FTEU3> were up 1.2 percent.

That came after Tokyo's Nikkei share average closed up 0.2 percent <.N225> and other Asian shares also gained.

The markets have not been given any excuse to do a lot of correcting, said Bernard McAlinden, strategist at NCB Stockbrokers. At the G20 meeting, the members agreed to keep the stimulus in place.

The dollar fell broadly as higher-yielding and commodity-linked currencies benefitted from renewed risk-taking sentiment.

We have positive equity markets so we have risk appetite. And that is still a dollar negative. People are buying into higher-yielding currencies or currencies where rates are going higher, said Niels Christiensen at Nordea in Copenhagen.

It's difficult to pinpoint any reason to hold or buy the dollar. So the dollar is still the preferred funding currency.

The euro was up 0.8 percent against the dollar at $1.4966. The Australian dollar was up 0.9 percent against the U.S. dollar and the New Zealand dollar was up 1.5 percent.

Bond markets were pressured not only by higher stocks but also ahead of a slew of supply this week, notably the $81 billion from the United States which starts with a sale of $40 billion in three-year notes later in the day.

Yields on 10-year Treasury notes edged up to 3.529 percent in Asian trade, up 2 basis points from late U.S. trade on Friday. They were last at 3.520 percent.

Japanese benchmark 10-year government bond yields surged to a 4-1/2 month high ahead of JGB auctions.

The G20 finance ministers and central bank governors, meeting over the weekend in Scotland, refrained from directly addressing currencies in talks to rebalance the global economy.

The International Monetary Fund said in a report while the dollar had depreciated in recent months, it still remained on the strong side, putting pressure on the U.S. unit.

Data on Friday showed U.S. employers cut a larger-than-expected 190,000 jobs in October and the unemployment rate rose to 10.2 percent. The dollar's fall prompted gold prices to hit a record high. It rose above $1,100 an ounce in Europe on Monday, extending last week's near 5.0 percent gains.

Oil rose more than $1 to above $78 a barrel on Monday, recouping some of the previous session's near 3 percent loss, on fears a powerful hurricane would cut U.S. oil and gas supplies and also lifted by the falling dollar.

(Additional reporting by Joanne Frearson and Jamie McGeever; Editing by Toby Chopra)