* Global stocks tumble on persistent economic worries
* Japanese government bonds yields jump a full point
* Yen surges, euro tumbles as investors unwind carry trade
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By Tom Miles
HONG KONG, Sept 5 (Reuters) - Fears about economic growth
and a 3 percent slump in U.S. stocks sent Asian shares
sprawling on Friday and investors sought safe-haven bonds and
unwound currency carry trades, lifting the yen to a 13-month
high versus the euro.
Wall Street suffered its steepest decline in more than two
months after weekly government data showed an unexpected jump
in the number of filings for jobless benefits, souring the mood
before Friday's August jobs report, which is expected to show
the eighth consecutive decline, with 75,000 jobs lost.
At 0125 GMT, Japan's Nikkei average <> was down 3
percent, Australia's benchmark S&P/ASX 200 index <> was
2.2 percent lower and Singapore's Straits Times index <.FTSTI>
fell to its lowest in almost two years.
"Wall Street fell sharply on fears about upcoming U.S. jobs
data and the increasingly gloomy outlook for the world economy,
especially in Europe," said Nagayuki Yamagishi, a strategist at
Mitsubishi UFJ Securities.
"Investors are dumping risky assets and fleeing to
quality."
Japanese government bond futures soared. September 10-year
futures <2JGBv1> jumped as much as 1.28 point to 138.78. The
benchmark 10-year yield <JP10YTN=JBTC> fell 6.5 basis points to
1.445 percent.
The yen <JPY=> surged in early Asian trade, hitting a
13-month highs against a sliding euro, as investors fled
leveraged carry trades amid falling share markets and rising
risk aversion.
Traders were bemused by the violence of the move which came
in the illiquid period between New York's close and Tokyo's
opening.
"What I am seeing today is a severe amount of post-New York
capitulation and risk aversion," said Kathy Lien, director of
currency research at GFT Forex in New York. "The reduced volume
is certainly exacerbating the move. But it's capitulation
pre-Asia."
The euro sank to 150.51 yen <EURJPY=R> before climbing back
to 152.25, having stood at 153.56 late in New York on Thursday.
Even the U.S. dollar, strong against most other currencies,
dropped to about 105.70 yen, its lowest level in more than a
month, before bouncing to 106.84.
Analysts said investors appeared to be bailing out of more
leveraged carry trades, positions funded by borrowing yen at
low rates to buy higher yielding currencies and commodities.
The yen leapt to a 13-month high on the Australian dollar
<AUDJPY=R>, dragging the Aussie down sharply against other
currencies. The euro fell to $1.4226 <EUR=>, from $1.4329 late
in New York and stayed within sight of Thursday's 10-month low.
"This is not a flight to quality, it is simply a flight,"
said Alan Ruskin, chief international strategist at RBS
Greenwich Capital. "Gold for example has failed to benefit,
cash is king -- even the greenback, warts and all, or the yen,
zero rates and all."
Growth fears rattled commodity markets, with Tokyo platinum
<0#JPL:> -- used in vehicle exhausts -- plunging by the daily
300 yen limit, or 6.1 percent, because of worries about poor
car sales, as well as dollar strength against the euro and weak
oil prices.
U.S. crude oil <CLc1> held firm in Asian trade, having
fallen $1.46 to $107.89 a barrel in New York on Thursday,
extending a slide from an all-time peak of more than $147 in
mid-July.
(Editing by Dhara Ranasinghe)
