* U.S. jobs data and Hungary debt worries pressure markets
* World stocks down 0.9 percent
* Euro at 4-year low vs dollar, below $1.20 (Updates with U.S. markets, changes byline, dateline, previous LONDON)
By Manuela Badawy
NEW YORK, June 7 (Reuters) - World stocks fell on Monday as weak U.S. jobs data and debt worries centred around eastern Europe triggered fears about the global economic recovery, which also pushed the euro to hit multi-year lows.
Safe-haven investments such as gold and U.S. Treasury securities gained ground amid concerns about European sovereign debt.
Data on Friday showing the U.S. economy generated fewer jobs than expected in May and comments from Hungarian officials suggesting the country could face a Greek-style debt crisis had triggered flight to safety. []
Government officials, however, on Monday stressed the country was not in the same situation as Greece and would meet budget deficit targets set in an IMF and EU aid deal.
German industrial orders jumped far more than expected in April, adding to signs Europe's largest economy was on the path to durable growth. [] But this data did little to raise hopes of a healthy recovery in the world economy.
MSCI's all-country world stock index <.MIWD00000PUS> was down 0.9 percent, off its lows, and its emerging market counterpart <.MSCIEF> was off 2.2 percent.
"The jobs data may have changed market sentiment a bit because the numbers for this important indicator showed what people have been suspecting for a while, that the U.S. economic recovery may be slowing a little," said Hiroaki Osakabe, fund manager at Chibagin Asset Management in Japan.
"Then you have this combined with signs that the euro zone debt problems may be very deep-rooted. Both of these put together are sparking selling."
Though Wall Street initially opened higher, stocks sagged shortly afterward as appetite for risky assets remained hurt by recent volatility and worries over Europe's fiscal crisis.
The Dow Jones industrial average <> was up 4.24 points, or 0.04 percent, at 9,936.21. The Standard & Poor's 500 Index <.SPX> gained 0.47 points, or 0.04 percent, to 1,065.35. The Nasdaq Composite Index <> gained 1.17 points, or 0.05 percent, to 2,220.34.
Investors sold off shares Friday and continued into Monday after monthly U.S. jobs data disappointed, adding fewer jobs than expected of which a large portion were temporary hirings for the U.S. Census.
In the currency market, European corporate demand helped lift the euro after it touched $1.1876 <EUR=EBS>, its weakest level since March 2006. But it remained below $1.20, a level pierced Friday after Hungary's warning about its deficit reminded investors of the severe debt problems plaguing some European countries.[]
"After Hungary's warning and weaker-than-expected U.S. jobs data on Friday, selling got a bit overdone," said Amelia Bourdeau, senior strategist at UBS in Stamford, Connecticut.
Hungary itself is of minimal importance on the global level, but there are concerns about exposure among leading banks if Hungary defaults or if the fall in the forint fuels a rise in loan delinquency among Hungarians who have borrowed heavily in euros and Swiss francs.
It also comes hard on the heels of worries about defaults in Greece and other southern euro zone members.
The pan-European FTSEurofirst 300 <> was flat while Japan's Nikkei <> closed down 3.84 percent.
U.S. Treasuries rose as fresh weakness in stocks enhanced the allure of safe-haven government bonds.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up 1/32, with the yield at 3.20 percent. The 2-year U.S. Treasury note <US2YT=RR> flat with the yield at 0.743 percent. The 30-year U.S. Treasury bond <US30YT=RR> was up 3/32, with the yield at 4.128 percent. (Additional reporting by Steven C. Johnson in New York and Jeremy Gaunt in London, Editing by Chizu Nomiyama)
