Investor confidence hits 9-month high - State St

LONDON, April 21 (Reuters) - Confidence among institutional investors shot up to a nine-month high in April as a recovery in global equity markets boosted morale in all regions, according to a survey by State Street.

The U.S. financial services firm said on Tuesday its global investor confidence index rose by 9.4 points to 79.6, its highest since July, from the upwardly revised March reading of 70.2.

Confidence was up in all three regions the firm surveyed.

The index was 65 percent up on an all-time low in December of 48.2, but well off the record high of 111 set in February 2001.

Among North American investors, the index rose 10 points this month to 70.2. European investors saw their reading increase 5 points to 68.9. The rise among Asia investors was more modest, with the index up 0.7 points to 87.3 from 86.6.

"The data reveal that institutional investors have participated with some enthusiasm in the recent market recovery," said Ken Froot, Harvard University Professor and a co-developer of the index.

State Street's Paul O'Connell, the other co-developer of the index, gave a cautious assessment. "Significant questions remain about the path and pace towards recovery, both in the U.S. and further afield.

"The global nature of the current financial crisis means that estimates of recovery time based on individual country examples from history may be too optimistic, and this is likely to weigh on investors' minds as we move through the second quarter," O'Connell said.

The data is extrapolated from movements in around $12 trillion of assets State Street holds as custodian for institutional investors.

(Reporting by Natsuko Waki; editing by Stephen Nisbet)