CORRECTED - CORRECTED-GLOBAL MARKETS-US dollar, Asia stocks rebound but risk

* Bets against dollar unwind as interest rate views shift

* Russia tensions ease but keep oil market volatile

* Asia stocks bounce from 2-year low (Corrects paragraph 11 to show Hong Kong stocks hit a one-year low on Thursday, not Friday)

By Kevin Plumberg

HONG KONG, Aug 25 (Reuters) - The U.S. dollar rose broadly on Monday, hitting a two-year high against sterling, with a downtrend in commodity prices intact, leaving investors scurrying to buy back the currency and sparking a rebound in Asian stocks.

European stock markets were expected to open little changed, according to financial bookmakers, with volumes likely lower than average because of a UK public holiday.

Recent reports showing shrinking or no economic growth in Britain, the euro zone and Japan have boosted the attraction of the dollar as an alternative investment, especially with crude prices trading more than $30 below a record high hit in July.

A rally in the dollar stalled last week after hitting a six-month high against the euro, but an upward trend in the U.S. currency is seen intact.

Even billionaire investor and long-time dollar detractor Warren Buffett, chairman of conglomerate Berkshire Hathaway Inc (BRKa.N), came to the currency's aid on Friday when he said in a television interview that he had no bets against the dollar.

"The combination of incremental weakness in the European economy and the lower oil prices should keep the pressure on euro/dollar in our view," Nizram Idris, currency strategist with UBS in Singapore, said in a note.

Asian stocks rebounded from a two-year low as the drop in oil prices back below $120 a barrel lifted shares of companies sensitive to energy prices, though trading volumes across the region were quite thin, suggesting a lack of conviction among investors.

Japan's Nikkei share average .N225 ended up 1.7 percent, after shares of Japan's second-largest car maker, Honda Motor Co (7267.T), led the way higher.

The MSCI pan-Asia stocks index .MIAS00000PUS was up 1.6 percent, after hitting the lowest since July 2006 on Friday. The MSCI Asia-Pacific ex-Japan index .MIAJP00000PUS rose 1.2 percent. Australia's benchmark share index .AXJO was up 1.7 percent, helped by rallying shares of the country's top banks.

Hong Kong's Hang Seng index .HSI led the region, up 3 percent after plumbing a one-year low on Thursday and being closed on Friday for a typhoon. Shares of offshore Chinese oil producer CNOOC (0883.HK) were up 4.3 percent and among the biggest boosts to the index, with the company expected to report solid first-half results on Wednesday.

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The euro EUR= fell 0.4 percent to $1.4721, about a cent away from last week's low.