* Oil higher on supply worries, Mideast protests
* World stocks down after softer U.S. retail sales
* Dollar climbs to 8-week high versus yen
(Updates prices, adds details)
By Wanfeng Zhou
NEW YORK, Feb 15 (Reuters) - World stocks edged off recent
30-month highs on Tuesday after weaker-than-expected U.S.
retail sales tempered optimism about the American economy and
oil prices rose as protests in Middle East countries raised
concerns about potential supply disruptions.
The MSCI world stocks index <.MIWD00000PUS> dropped 0.1
percent, though the index remained near last week's 30-month
highs.
U.S. stocks <> <.SPX> fell after data showed sales at
U.S. retailers rose only 0.3 percent in January as extreme
weather in large parts of the country kept shoppers at home.
Trading volume was lower than average, following the lightest
day of trading in U.S. markets this year.
"I don't know if today's data was soft enough to take the
legs from underneath the market, but interestingly it's
indicative of some spending exhaustion occurring in the
consumer space," said Mark Luschini, chief investment
strategist at Janney Montgomery Scott in Philadelphia.
Brent crude for April delivery <LCOc1> earlier pushed to
$104.04 a barrel, before retreating. U.S. crude oil for March
delivery <CLH1> climbed as high as $85.97 in early New York
trading, rebounding from a 2-1/2-month low set in the previous
session.
Last week's ousting of Egyptian President Hosni Mubarak and
the toppling of Tunisian counterpart Zine al-Abidine Ben Ali a
month earlier have raised concern among investors that Middle
East political protests could disrupt oil supplies.
"We are seeing contagion from Tunisia and Egypt in other
countries that are more important for the oil markets," said
Christophe Barret, oil analyst at Credit Agricole Corporate and
Investment Bank.
Stocks worldwide earlier Tuesday got a boost after Chinese
inflation data came in lower than expected at 4.9 percent in
the year to January, easing investor concerns the world's No. 2
economy will have to tighten monetary policy more aggressively.
[]
"The data probably slightly eased expectations of immediate
tightening, although in the overall scheme of things, this
doesn't change the fact that China is still in a tightening
phase," said Etsuko Yamashita, chief economist at SMBC.
Inflation pressures, particularly in emerging markets, have
been part of the motivation this year for investors to move
into developed stock markets.
Japan's Nikkei <> stock index logged a 10-month
closing high and Europe's FTSEurofirst 300 <> rose 0.1
percent.
DOLLAR AND YIELDS
The U.S. dollar climbed as high as 83.93 yen <JPY=EBS> on
trading platform EBS, the highest level since mid-December,
boosted by a rise in U.S. Treasury yields.
Two-year notes <US2YT=RR> yields earlier reached around
0.89 percent, their highest level since May of last year.
But the dollar slipped versus the euro <EUR=EBS>, which was
boosted by demand from Middle East and Asian investors.
Europe moved closer to a deal on tackling its debt crisis
on Tuesday. But time is tight to agree a comprehensive package
by the end of March. Officials announced extra meetings to try
to reach an accord.
Debt issued by the euro zone's heavily indebted countries
remained under pressure. Uncertainty over a rescue package for
the region has seen spreads between peripheral bond yields and
German benchmarks widen in recent days.
The euro zone ended last year with stable economic growth,
disappointing those hoping for a faster recovery as expansion
in the three largest nations fell short of forecasts and Greece
and Portugal contracted. But German data and a sentiment
indicator suggested the country's economic recovery remained on
track.
(Additional reporting by Edward Krudy in New York and Jeremy
Gaunt and Claire Milhench in London; Editing by Andrew Hay)
