* Sterling jumps after wages post steep gains
* Oils falls on U.S. production data, inventories (Updates after U.S. market open, changes comment, dateline from previous LONDON)
By Rodrigo Campos
NEW YORK, Oct 16 (Reuters) - Stocks bounced back on Tuesday across the world, supported by earnings expectations, while oil prices fell on evidence of higher U.S. oil production and increasing U.S. crude inventories.
European shares rallied, pulling up from Monday's 22-month lows, partly on expectations that the reporting season will deliver double-digit earnings growth. A rebound in Italian assets helped battered equities find firmer ground as well.
Japan led Asian shares higher with the Nikkei index up 1.25 percent after a decline of nearly 2 percent on Monday.
On Wall Street, tech shares led the way a day after a decline in Apple dragged the Nasdaq lower, while the healthcare sector also rose after earnings reports from Johnson & Johnson and UnitedHealth Group.
"A couple of inputs that caused a sell-off in the last two weeks, such as rising interest rates, higher oil prices and the dollar, have calmed down to rational levels and the market may be able to positively respond to that as we work our way through the earnings season," said Art Hogan, chief market strategist at B. Riley FBR in New York.
The Dow Jones Industrial Average rose 244.55 points, or 0.97 percent, to 25,495.1, the S&P 500 gained 24.85 points, or 0.90 percent, to 2,775.64 and the Nasdaq Composite added 74.71 points, or 1.01 percent, to 7,505.46.
The pan-European FTSEurofirst 300 index rose 1.30 percent and MSCI's gauge of stocks across the globe gained 0.91 percent.
Emerging market stocks rose 1.09 percent. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.61 percent higher.
Crude futures fell after the U.S. Energy Information Administration (EIA) said oil production from seven major U.S. shale basins is expected to rise by 98,000 barrels per day in November to a record of 7.71 million.
U.S. crude fell 0.39 percent to $71.50 per barrel and Brent was last at $80.46, down 0.4 percent on the day.
Sterling rose against the dollar after data showed basic wages of workers in Britain rose at their fastest pace in nearly a decade. The British currency was last trading at $1.3213, up 0.48 percent on the day.
Meanwhile, a survey showed German investor morale darkened more than expected in October.
The euro rose 0.02 percent to $1.1579, the Japanese yen weakened 0.38 percent versus the greenback at 112.22 per dollar. The dollar index fell 0.05 percent.
Investors waited to see Washington's view on China on the U.S. Treasury's semiannual currency report due this week, after media reports last week that it has not labeled Beijing a currency manipulator.
Benchmark 10-year notes last fell 1/32 in price to yield 3.1671 percent, from 3.163 percent late on Monday.
The 30-year bond last fell 2/32 in price to yield 3.3442 percent, from 3.341 percent late on Monday.
"Following the extraordinary volatility in both stocks and bonds, we are seeing a bit of a calming here as traders are looking for new ranges," said John Canavan, market strategist at Stone & McCarthy Research Associates in New York.
Investors scaled back bearish bets on longer-dated U.S. government debt this week, suggesting less selling pressure on Treasuries, according to a survey released by J.P. Morgan Securities on Tuesday.
Reporting by Rodrigo Campos, Karen Brettell and Richard Leong in New York; additional reporting by Medha Singh in Bengaluru and Christopher Johnson in London; Editing by Nick Zieminski