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* Focus turns to Fed stimulus prospects after government shutdown * China Q3 growth quickens to 7.8 pct yr/yr * World shares at 5-year high, Google hits $1,000 mark for first time * Euro hits 8-1/2-month high vs dollar By Herbert Lash NEW YORK, Oct 18 (Reuters) - Expectations the Federal Reserve will keep its stimulus in place for longer because of the U.S. fiscal stand-off's impact on the economy on Friday pushed a measure of global equity markets to a fresh five-year high and the dollar to an eight-month low. Better-than-expected results from Google Inc and Morgan Stanley also lifted stocks on Wall Street, with shares of the Internet search company rising 13 percent at one point to breach the $1,000 mark for the first time. An acceleration in China's giant economy provided a further boost for stock markets, as well as for commodities such as oil and copper, as the prospect of an extended spell of super-easy money and improving growth buoyed investors. MSCI's index tracking the performance of 45 countries rose 0.57 percent to highs last seen in May 2008, while a European index, the Stoxx Europe 600 gained for a seventh successive day, its longest winning streak this year. A last-minute deal by U.S. lawmakers this week to avert a debt default and re-open shuttered government offices also has bolstered investor confidence, pushing the broad S&P 500 to a record close on Thursday. On the company earnings front, so far 85 companies representing 25.8 percent of S&P 500's market capitalization have reported third-quarter results, with earnings beating estimates by an average of 4.2 percent. Google was up 12.4 percent at $999.26, while Morgan Stanley rose 2.5 percent to $29.64. "Surprises have been broad-based with all of the 9 sectors surpassing their forecasts," said Jonathan Golub, chief U.S. market strategist at RBC Capital Markets in New York. The Dow Jones industrial average was down 11.56 points, or 0.08 percent, at 15,360.09. The Standard & Poor's 500 Index was up 5.78 points, or 0.33 percent, at 1,738.93. The Nasdaq Composite Index was up 31.82 points, or 0.82 percent, at 3,894.97. Traders were continuing to sell it against a broad basket of currencies from advanced and emerging economies, leaving the dollar index at 79.580 on expectations the Fed may delay scaling back its monetary stimulus. Analysts said concerns about the negative impact on the U.S. economy and the likelihood the Fed would leave its bond-buying program intact until well into next year would weigh on the dollar, leaving the euro the potential to rise towards $1.40. "The real economy has been negatively impacted by the government shutdown and uncertainty of the debt crisis, all of which pushes out eventual Fed policy normalization which is bad for the dollar," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. The dollar index, which measures the dollar's value against a basket of currencies, was down 0.05 percent at 79.604. The euro rose to 0.05 percent tp $1.3682. Brent crude futures rose toward $110 a barrel, supported by a weak U.S. dollar and third quarter GDP growth data from China which matched consensus expectations. Brent crude was up 46 cents at $109.57 a barrel, while U.S. crude oil was up 32 cents at $100.99. Investors were relieved by data showing China's economy grew 7.8 percent in the third quarter, its fastest pace this year and meeting expectations, as firmer foreign and domestic demand lifted factory output and retail sales. China's CSI300 index climbed 0.7 percent, while Australian shares jumped to their highest level since June 2008. Australian exports are closely linked to China's economic fortunes. German Bunds were on course for a steady end to a week of hefty gains, while in the euro zone periphery only Portugal was in the red along with its main share market as its debt concerns remained prominent. Benchmark 10-year U.S. Treasuries rose 2/32 to yield 2.5777 percent. In commodity markets, China's stronger growth helped copper climb 0.38 percent to 7,257.50 a tonne.