* U.S. jobs data and Hungary debt worries hit markets
* World stocks down 1.5 percent
* Euro at 4-year low vs dollar, bewliw $1.20
By Jeremy Gaunt, European Investment Correspondent
LONDON, June 7 (Reuters) - World stocks fell sharply on
Monday and the euro hit four-year lows against the dollar as
investors reacted to signs the U.S. economic recovery may be
slowing and to new debt worries centred on eastern Europe.
MSCI's all-country world stock index <.MIWD00000PUS> was
down 1.5 percent and its emerging market counterpart <.MSCIEF>
was off 2.6 percent.
Investors sold off shares on Friday after monthly U.S. jobs
data disappointed, adding fewer jobs than expected while a large
portion were temporary hirings for the U.S. Census.
That triggered concerns that the recovery in the world's
largest economy is not as robust as believed.
At the same time, other fears centred on Hungary, where
ruling party officials suggested there was a slim chance of it
avoiding a Greece-style debt crisis.
"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."
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 down 1.6
percent. Earlier, Japan's Nikkei <> closed down 3.84
percent.
EURO TROUBLE
The euro fell broadly, hitting its lowest in more than four
years against the dollar. Higher-yielding currencies such as the
Australian dollar also fell as equities and commodity prices
took a knock.
Market players said the single currency's close below
$1.2135 on Friday, marking a 50 percent retracement of its
2000-2008 rally, was a bearish chart signal and was adding to
the single currency's woes.
Lack of any expression of strong concerns at a weekend
meeting of G20 finance ministers over the weekend or from euro
zone policymakers also spurred euro selling, traders said.
"The worries about Hungary came at a time when the market is
really sensitive to any negative economic news and it has
affected risk sentiment all over the world, while the U.S.
non-farm payroll data added to the negative feeling," said
Elisabeth Andreew, currency strategist at Nordea in Copenhagen.
The euro was at $1.1937 <EUR>.
On bond markets, core euro zone government futures marked a
record high.
(Additional reporting by Jessica Mortimer; editing by Patrick
Graham)
