GLOBAL MARKETS-Stocks slide on US data; dollar off vs yen, euro

                                
 * U.S. stocks slide after poor U.S. economic data
                                
 * Dollar hits 7-1/2-month low vs yen, falls against euro
                                
 * Longer-dated bonds rise on rates view, economic data
 (Updates with U.S. markets activity, changes byline, dateline;
previous LONDON)
                                
 By Herbert Lash
                                
 NEW YORK, Sept 25 (Reuters) - Global stocks fell on Friday
after disappointing U.S. economic data fanned fears that
recovery from recession would be tepid, while the U.S. dollar
slipped to a 7-1/2-month low beneath 90 yen, a key level.
                                
 The dollar fell after leaders from the Group of 20 meeting
at the Pittsburgh summit pledged to continue emergency stimulus
spending until a recovery takes hold, suggesting U.S. interest
rates would remain very low. For more see [ID:nN25503759].
                                
 Oil slid below $66 a barrel on concerns about economic
recovery while large amounts of spare oil production capacity
tempered market reaction to heightened tension related to
Iran's nuclear program. [ID:nSYD299861]
                                
 Long-dated euro zone government bond futures hit an 11-day
high, buoyed by weaker-than-forecast U.S. data and by declining
equity markets around the world. [ID:nLP326744]
                                
 The 30-year U.S. Treasury bond rose over a point in price
as an early rally buttressed by the weak data gathered steam.
                                
 The MSCI all-country world index <.MIWD00000PUS> fell 0.71
percent, and the three major U.S. stock indexes also declined.
                                
 "The numbers are throwing some cold water ... Investors are
now in doubt," said John Praveen, chief investment strategist
at Prudential International Investments Advisers LLC in Newark,
New Jersey.
                                
 "People had some high expectations after previous readings
that were positive," Praveen said.
                                
 Reports from the U.S. Commerce Department on durable goods
and home sales overshadowed a jump in the Reuters/University of
Michigan Surveys of Consumers sentiment index for September to
the highest since January 2008. [ID:nN25390248]
                                
 New orders for U.S. manufactured goods dropped by the
biggest amount in seven months, and a rise in new home sales
fell short of forecast, raising questions about the strength of
the economic recovery.
                                
 At 1 p.m. (1700 GMT), the Dow Jones industrial average
<.DJI> was down 58.04 points, or 0.60 percent, at 9,649.40. The
Standard & Poor's 500 Index <.SPX> was down 8.37 points, or
0.80 percent, at 1,042.41. The Nasdaq Composite Index <.IXIC>
was down 19.65 points, or 0.93 percent, at 2,087.96.
                                
 The Nasdaq was hit by a 17 percent slump in shares of
Research In Motion Ltd <RIMM.O><RIM.TO> a day after the
BlackBerry maker reported second-quarter revenue that missed
estimates and gave a disappointing outlook. [ID:nN24466680]
                                
 European shares fell to a more than two-week closing low as
weaker financials outpaced gains in heavyweight energy stocks.
                                
 The FTSEurofirst 300 <.FTEU3> of top European shares closed
0.35 percent lower at 983.91 in a choppy session.
                                
 Banks <.SX7P> were among the top European losers as the G20
leaders met for talks on possible tighter banking regulation.
                                
 The yen got a boost after Japanese Finance Minister
Hirohisa Fujii and an influential former finance official
suggested separately that authorities were not inclined to halt
the currency's rise. [ID:nLP487977]
                                
 Analysts said repatriation of funds before Japan's fiscal
year hits the halfway mark on Sept. 30 also lifted the yen.
                                
 "The comments suggesting Japan is more comfortable with a
strong yen helped, but it's also a capital flow story with a
lot of money coming back at midyear," said Greg Salvaggio, vice
president of trading at Tempus Consulting in Washington.
                                
 The U.S. Dollar Index <.DXY> was down 0.20 percent at
76.744. The dollar was down 1.63 percent at 89.79 yen <JPY=>
while the euro <EUR=> was up 0.12 percent at $1.4676.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
10/32 in price to yield 3.34 percent. The 2-year U.S. Treasury
note <US2YT=RR> was down 4/32 in price yield 0.99 percent.
                                
 U.S. light sweet crude oil <CLc1> fell 11 cents, or 0.17
percent, to  $65.78 per barrel.
                                
 Spot gold <XAU=> fell $4.45 to $989.30 an ounce.
                                
 Japan's Nikkei share average <.N225> led declining equity
markets in Asia, falling 2.6 percent. The MSCI index of Asia
Pacific shares outside Japan <.MIAPJ0000PUS> was largely
unchanged, not far from a 13-month high hit on Wednesday.
 (Reporting by Rodrigo Campos, Steven C. Johnson and Burton
Frierson in New York and Dominic Lau in London; Writing by
Herbert Lash; Editing by James Dalgleish)