GLOBAL MARKETS-U.S. stocks rebound from rout, dollar edges up

    * Wall Street rebounds, MSCI world index stuck near 4-month 
low 
    * European shares cut losses; Nikkei posts worst day since 
June 
    * Dollar edges up as safe-haven bids fade for yen, bonds, 
gold 
    * Emerging market stocks trim decline, currencies stabilize 
 
 (Updates market action, adds quote, changes dateline) 
    By Richard Leong 
    NEW YORK, Feb 4 (Reuters) - Wall Street stock prices rose on 
Tuesday, helping world shares steady after they hit a near 
four-month low, while the yen and U.S. and German government 
debt prices fell as jitters over emerging markets retreated. 
    Renewed bids for U.S. equities bolstered the dollar and oil 
and pared the safe-haven demand for gold. 
    Monday's sharp decline on weaker-than-expected U.S. data, 
concerns over growth in China and the outlook for some emerging 
economies opened the door for traders looking for bargains, 
analysts said. 
    "Yesterday was really the first concerted selloff, 
indiscriminate as to individual stocks," said Rick Meckler, 
president of investment firm LibertyView Capital Management in 
Jersey City, New Jersey. 
    "With that type of selling going on, this morning you're 
seeing some bargain-hunters looking for oversold opportunities." 
    
    After the previous session's pounding, the Dow Jones 
industrial average    ended up 72.44 points, or 0.47 
percent, at 15,445.24. The Standard & Poor's 500 Index    
closed up 13.31 points, or 0.76 percent, at 1,755.20. The Nasdaq 
Composite Index    finished up 34.56 points, or 0.86 
percent, at 4,031.52. 
    The bounce in U.S. equities pulled MSCI's world index 
   from its lowest level since October, set earlier 
as Japan's Nikkei    recorded a 4 percent drop. The measure 
of shares in 45 countries was last down 0.18 percent at 384.97. 
    Europe's top shares    finished 0.17 percent lower at 
1,270.74 after falling as much as 0.68 percent.  .EU   
    U.S. factory orders released shortly after the Wall Street 
open bolstered the fragile mood. Nevertheless, lingering anxiety 
about troubles in emerging markets and uneasiness over the 
upcoming U.S. jobs report on Friday kept traders on edge. 
      
    "This emerging (market) crisis does matter if it worsens 
because it will have an impact on global growth," said Daniel 
McCormack, a strategist at Macquarie in London. 
    Emerging market stocks    came back from a 1.4 
percent drop to end 0.8 percent lower, while hard-hit currencies 
including Turkey's lira   , Russia's rouble   , 
Hungary's forint    and the South African rand    all 
moved away from their recent lows.     
    As the severity in the selloff in emerging markets abated, 
the dollar improved slightly against major currencies, bouncing 
back from a more than two-month low of 100.74 yen earlier. 
    The dollar index    was up 0.14 percent at 81.12, 
retracing part of the 0.37 percent drop on Monday. The greenback 
rose 0.64 percent versus the yen at 101.61 yen   . 
    Reduced safe-haven bids bogged down U.S. Treasuries and 
German Bunds. Benchmark 10-year U.S. government debt    
fell 12/32 in price to yield 2.626 percent after its yield 
slipped to a three-month low late on Monday. German Bund futures 
   lost 12 basis points to 143.90.  US/   GVD/EUR  
    Gold    gave back some of Monday's safe-haven gains and 
last traded down 0.2 percent at $1,254.91 an ounce. 
    In other commodities, oil prices in London fell on worries 
about weakening demand in the wake of recent disappointing U.S. 
and Chinese economic data. Brent crude    settled 26 cents, 
or 0.25 percent, lower at $105.78 a barrel. 
    U.S. oil futures   , on the other hand, rose on bets on 
a reduced stockpile at a key delivery point due to the start-up 
of a major pipeline. The March NYMEX contract    settled up 
76 cents or 0.79 percent at $97.19 a barrel.  O/R  
   <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
   U.S. factory orders          http://link.reuters.com/pyb56t 
   U.S. durable goods           http://link.reuters.com/baf65v  
   Asset returns last 12 months http://link.reuters.com/huq75s 
   EM 2014 FX performance       http://link.reuters.com/jus35t 
   Currencies v dollar          http://link.reuters.com/tak27s 
   Yen vs Nikkei                http://link.reuters.com/cuz62v 
  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>     
     
    TEN-PERCENT CORRECTION? 
    The stock market gyrations caused the VIX   , seen as 
the market's fear index, to jump to its highest since June on 
Monday before easing 11.9 percent to 18.90 on Tuesday. 
    "Sentiment has soured so it's reasonable to see some more 
downward move in the near term," said Terry Sandven, chief 
equity strategist with U.S. Bank Wealth Management in 
Minneapolis. 
    The Nikkei has shed 14 percent since the start of the year 
following last year's 50 percent boom. By comparison, the U.S. 
benchmark S&P 500    has dropped 5.0 percent and the 
FTSEurofirst 300    has fallen 3.5 percent. 
    "With the main European indexes down around 7 percent (since 
peaks), chatter on trading desk is about whether we are in for a 
'10 percent' correction," Jonathan Sudaria, a dealer at Capital 
Spreads in London, said in emailed comments. 
    More evidence of a slowing global economy will likely have 
to materialize for stocks to fall much further, U.S. Bank's 
Sandven said. "We are not in a bear market yet. We are in still 
an uptrend." 
           
 
 (Additional reporting by Rodrigo Campos in New York and; Lisa 
Twaronite in Tokyo; Editing by Catherine Evans and Dan Grebler) 
 ((richard.leong@thomsonreuters.com)(+1 646 303 6313)(Reuters 
Messaging: 
richard.leong.thomsonreuters.com@thomsonreuters.net)(Twitter 
@RichardLeong2)) 
  
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Keywords: MARKETS GLOBAL