GLOBAL MARKETS-Global stocks, oil fall on Japan quake, tsunami

                                
  
                                
 * Quake, tsunami raise worries over impact on economy
                                
 * Yen rises on expectations of fund repatriation
                                
 * Long-dated U.S. bond prices fall on Japan fears
 (Updates close of European markets)
                                
 By Herbert Lash
                                
 NEW YORK, March 11 (Reuters) - Japan's massive earthquake
and deadly tsunami pounded commodity and equity markets
worldwide on Friday, while the yen rose on expectations that
Tokyo will need to repatriate funds to pay for repairs.
                                
 Oil prices slid more than $3 a barrel as investors grappled
with the potential economic impact after the Japan's biggest
earthquake on record hit the country's northeast.
                                
 U.S. crude  <CLc1> dipped below $100, before paring some
losses. Japan is the world's third largest economy and also the
world's third-largest energy consumer; it imports almost all
its energy needs. MSCI's all-country world index of global
stocks <.MIWD00000PUS> fell to a five-week low. For details
see: [nL3E7EB0MF]
                                
 "We need to think what the potential impact on Japanese
economy from the quake will be and what the impact on global
economy will be," said Olivier Jakob, with Petromatrix. "That
may weigh on oil demand from Japan and the oil price."
                                
 Japanese equity futures fell 3.3 percent, but market
players said shares may not suffer too deep a slide because
major cities and manufacturing facilities were not damaged by
the 8.9 magnitude quake and 10-meter tsuanami, which killed
hundreds. [.T]
                                
 Tsunami warnings were lifted for some densely populated
Asia Pacific countries previously thought to be at risk.
[ID:nL3E7EB1U4]
                                
 Copper extended its fall on news of the quake and as
Chinese inflation data fueled concerns over demand from the top
consumer of the metal. [ID:nLDE72A0GF]
                                
 Chinese inflation in February topped expectations at 4.9
percent and looked set to climb further in coming months,
adding to pressure for another dose of monetary tightening.
[ID:nTOE72A01K]
                                
 "The earthquake is clearly risk-negative, and you have seen
continuation of selling that has been going on all week. But
there are plenty of other things to make the world unhappy,"
said Nick Moore, RBS global head of commodity and strategy.
                                
 North Sea Brent <LCOc1> fell $1.53 to $113.90, while U.S.
light sweet crude was off $2.03 at $100.67.
                                
 European shares fell to a 2011 closing low, with insurers
among the hardest hit, but U.S. stocks edged higher as U.S.
Commerce Department data pointed to strong consumer spending
and accelerated growth in the first quarter.
                                
 The pan-European FTSEurofirst 300 index <.FTEU3> of top
shares was down 0.7 percent.
                                
 "The Japanese earthquake has had a direct impact on the
insurers, but investors are also worried about issues like what
is going to happen with the Europe stability fund and whether
other countries could get downgraded," said Colin McLean,
managing director at SVM Asset Management in Edinburgh, which
has about 650 million sterling ($1.05 billion) under
management.
                                
 U.S. retail sales rose 1.0 percent in February, the largest
gain in four months, as shoppers stepped up purchases of autos,
clothes and other goods even as they spent more for gasoline.
[ID:nN11250325]
                                
 News that U.S. consumer sentiment fell to its lowest level
in five months in early March as gas prices rose later took
some of the glow off the retail sales report. [ID:nN10186886].
                                
 The Dow Jones industrial average <.DJI> was up 15.06
points, or 0.13 percent, at 11,999.67. The Standard & Poor's
500 Index <.SPX> was up 5.34 points, or 0.41 percent, at
1,300.45. The Nasdaq Composite Index <.IXIC> was up 5.78
points, or 0.21 percent, at 2,706.80.
                                
 The yen gained against the dollar and the euro, buoyed by
expectations repatriated funds will flow in to pay to repaier
damages caused by the quake and tsunami. [ID:nLDE72A1FX]
                                
 The yen recovered after an initial knee-jerk reaction to
sell the currency drove it to a two-week low against the
dollar. Analysts said the yen could stay choppy on near-term
worries about the impact on a shaky Japanese economy.
                                
 Gold slipped but was supported by the safe-haven buying on
the earthquake and investor concerns over unrest in the Middle
East. [ID:nLDE72A0PU]
                                
 Global equity markets were rattled by worries about the
festering European debt crisis and Middle East unrest.
                                
 "You have huge global macro events happening and everybody
is focused on these events. You have had almost this perfect
storm over the past two days," said Cort Gwon, chief strategist
at HudsonView Capital Management in New York.
                                
 U.S. Treasury debt prices dropped on fears that Japanese
insurers may need to sell bonds to pay for damages.
[ID:nN11241248]
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> shed
12/32 in price to yield 3.40 percent.
 (Reporting by Chuck Mikolajczak and Karen Brettell in New
York; Jessica Mortimer, Ikuko Kurahone, Harpreet Bhal and
Pratima Desai in London; Writing by Herbert Lash; Editing by
Leslie Adler)