* Quake, tsunami raise worries over impact on economy
* Global stocks, oil fall after massive Japanese quake
* Yen rises on expectations of fund repatriation
* Long-dated U.S. bond prices fall on Japan fears
(Updates to close of European markets)
By Herbert Lash
NEW YORK, March 11 (Reuters) - Japan's massive earthquake
slammed risk assets across the world on Friday as concerns
mounted about the still unknown damage to the world's
third-largest economy from the devastating tsunami spawned.
Oil prices slid more than $3 a barrel at one point as
investors tried to assess the potential economic impact after
Japan's biggest earthquake on record hit the country's
northeast, killing at least 1,000 people. For details see
[].
The quake, the most powerful since Japan started keeping
records 140 years ago, sparked at least 80 fires in coastal
cities and towns, Kyodo said. Japanese nuclear power plants and
oil refineries were shut and one refinery was ablaze.
U.S. crude <CLc1> dipped below $100 before paring some
losses. Japan is the world's third-largest energy consumer and
imports almost all its energy needs.
MSCI's all-country world index of global stocks
<.MIWD00000PUS> fell to a five-week low but the yen advanced on
expectations Tokyo will repatriate funds to pay for repairs.
"We need to think what the potential impact on the Japanese
economy from the quake will be and what the impact on the
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. Market players,
however, 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 (33-foot) tsunami. []
Tsunami warnings were lifted for some densely populated
Asia Pacific countries previously thought to be at risk.
[]
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. []
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.
[]
"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 $1.66 to $113.77 per barrel,
while U.S. light sweet crude was off $1.72 at $100.98.
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 <> of top
shares fell 0.8 percent at 1131.78.
"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.
[]
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. []
The Dow Jones industrial average <> was up 16.91
points, or 0.14 percent, at 12,001.52. The Standard & Poor's
500 Index <.SPX> was up 4.88 points, or 0.38 percent, at
1,299.99. The Nasdaq Composite Index <> was up 5.78
points, or 0.21 percent, at 2,706.80.
The yen gained against the dollar <JPY=> and the euro
<EURJPY=>, buoyed by expectations repatriated funds will flow
in to pay to repair damage caused by the quake and tsunami.
[]
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 and North Africa. []
Gold pushed higher as the Japan quake and Mideast turmoil
kept the metal underpinned.
"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.
[]
The benchmark 10-year U.S. Treasury note <US10YT=RR> shed
10/32 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
James Dalgleish)
