By Huw Jones

LONDON, Jan 26 (Reuters) -Stocks held their gains on Thursday after data showed the U.S. economy grew at a faster-than-expected clip in the final three months of 2022, holding out hope for corporate earnings as investors hunker down for next week's Federal Reserve meeting.

U.S. gross domestic products increased at an annualised rate of 2.9% in the fourth quarter of 2022, the Commerce Department said, weaker than the 3.2% pace in the prior three months, but ahead of the 2.6% forecast by economists polled by Reuters.

Oil prices gained sharply on expectations that demand will strengthen as top oil importer China reopens its economy, while gold slid after hitting a 9-month peak.

The dollar was steady against its peers as a gloomy fourth-quarter earnings season continued ahead of U.S. Federal Reserve, European Central Bank, and Bank of England meetings next week, with all three expected to continue hiking interest rates.

Stocks rose on Wednesday after the Bank of Canada became the first major central bank to say it was ready to pause or end its tightening cycle, with markets now hoping that other central banks will hint next week at a similar mindset, analysts said.

U.S. stock index futures 1YMcv1, EScv1, NQcv1 were firmer after news of Tesla's TSLA.O bullish sales outlook for its electric cars.

The MSCI all country stock index .MIWD00000PUS was up 0.2% at 644.68 points, just short of Monday's high for the year, with the benchmark now 6% up for 2023.

In Europe, the STOXX index .STOXX of 600 leading companies was up 0.6%, leaving it up about 6% for the year, erasing about half of last year's losses.

"What the market is really looking for is what the Fed will say next week in terms of how many hikes they have in mind," said Laureline Renaud-Chatelain, fixed income strategist at Pictet Wealth Management, who expects a 25-basis point hike at next week's Fed meeting.

Markets are expecting rate cuts later this year and while there is momentum in stocks, the unfolding fourth-quarter results season is disappointing in parts, leading to corrections in earnings expectations, Renaud-Chatelain said.

"We believe the Fed will make a special effort to avoid suggesting that the end of the tightening process is in sight," said Kevin Cummins, chief economist at NatWest Markets.

CRUDE JUMPS, TREASURIES STEADY

Asian equities rose to a fresh seven-month high, with Hong Kong shares playing catch-up to other markets' gains as trade resumed after its three-day Lunar New Year holiday.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 1.1% and was set for its fifth straight day of gains.

Hong Kong's Hang Seng Index .HSI surged 2.4% in its first day of trade in the Year of the Rabbit, while Japan's Nikkei .N225 fell 0.12%.

In the currency market, the dollar index =USD, which measures the U.S. currency against six major rivals, was firmer at 101.71.

The Japanese yen JPY=EBS strengthened 0.15% to 129.77 per dollar, while sterling GBP=D3 was last trading at $1.2393, down slightly on the day.

The yield on 10-year Treasury notes US10YT=RR edged up to 3.481%, while the yield on the 30-year Treasury bond US30YT=RR was firmer at 3.6248%.

Oil gained, helped by U.S. crude stocks rising less than expected. U.S. West Texas Intermediate (WTI) crude CLc1 was up nearly 2% at $81.68 per barrel, while Brent LCOc1 was at $87.60, up 1.7% on the day. O/R

Gold prices XAU= earlier touched a nine-month high before easing 0.3% to $1,939.

Reporting by Huw Jones, additional reporting by Ankur Banerjee; Editing by Kim Coghill, Nick Macfie, Elaine Hardcastle and Andrea Ricci

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