* Investors rethink economic growth on Greek debt worry
* Chinese inflation, weak Japanese and US data a concern
* Gold, bonds benefit from safehaven flows
* US oil prices rise on weaker dollar
(Updated market action, changes dateline, byline)
By Richard Leong
NEW YORK, April 14 (Reuters) - Stocks on major world
markets fell and the U.S. dollar slipped on Thursday as
Greece's debt problem, Chinese inflation and disappointing U.S.
jobs data stoked worries over a global economic slowdown.
Bonds and gold rose as uneasy investors shifted funds into
less risky investments.
U.S. oil prices climbed on the weaker dollar.
"We do have to scale back growth expectations. The market
is more concerned about what growth will be like with rising
input costs," said Jerry Webman, senior investment officer and
chief economist at OppenheimerFunds in New York. "People are
looking at 'risk-off' trades."
World stocks, as measured by the MSCI world index
<.MIWD00000PUS> shed 0.3 percent despite a burst of corporate
activity that would usually lift investors' spirits.
European stocks <> fell 0.7 percent, while Wall
Street stocks opened lower with the S&P 500 <.SPX> down 0.5
percent.
In Tokyo, the Nikkei index <> bucked the trend, rising
0.1 percent following Wednesday's late gains in the U.S.
Selling in European stocks emerged on a report that Chinese
inflation would re-accelerate after slowing recently. Investors
are particularly concerned about Chinese inflation in case the
government attempts to restrain it by raising interest rates
prompts a 'hard landing' for the economy.
"Inflation in emerging economies has become a serious
issue, as the impact from high commodity prices is stronger for
those countries," said Arnaud Scarpaci, fund manager at
Paris-based Agilis Gestion.
Hong Kong's Phoenix TV, citing an unnamed source, said
China's annual rate of inflation in March was likely to be 5.3
percent to 5.4 percent, a 32-month high and just above an
estimate in a Reuters poll. []
Stock losses grew as Greek bond yields soared, with
short-dated paper coming under the most intense pressure, as
markets priced in a greater probability that Athens would be
forced to restructure its runaway debt.
Yields of other peripheral euro zone states also rose
sharply. []
Adding to jitters over the bailout cost in Europe was the
toll on Japan from last month's deadly quake and tsunamis.
The Reuters Tankan survey of 400 large firms found on
Thursday that power shortages caused by the crippled Fukushima
nuclear plant had hit nearly 60 percent of local companies,
disrupting production and supply chains. []
In the U.S., the surprise rise in jobless claims raised
doubts over the recovery in the labor market. For more, see
[]
Renewed anxiety over the U.S. economy hurt the dollar,
which fell against the yen at 83.11 yen <JPY=>. The greenback
was flat versus the euro at $1.4424 <EUR=>, paring its earlier
gain after the weaker-than-expected claims data. []
The weaker dollar supported oil value, despite worries over
less demand if the world economy slows.
U.S. oil prices <CLc1> were up 76 cents at $107.82 a
barrel. But in London, Brent crude <LCOK1> was stuck in the
red, down 28 cents at $122.60. For more, see []
Gold prices <XAU=> jumped to $1,466.40 an ounce, up from
$1,454.61 late on Wednesday.
In bond trading, U.S. Treasuries firmed in price with the
benchmark 10-year yield <US10YT=RR> fell to 3.45 percent, the
lowest level in about 1-1/2 weeks.
German Bund futures <FGBLc1> were up 0.4 percent at
120.93.
(Additional reporting by Angela Moon and Gertrude
Chavez-Dreyfuss in New York; Jeremy Gaunt, Jan Harvey, Nia
Williams in London)
