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

    * Wall Street rebounds, MSCI world index stuck near 4-month 
low 
    * European shares pare losses; Nikkei has worst day since 
June 
    * Dollar gains as safe-haven bids for yen, bonds fade 
 
 (Updates market action to U.S. midday, adds quote, U.S. 
dateline) 
    By Marc Jones and Richard Leong 
    LONDON/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 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    was up 86.28 points, or 0.56 percent, 
at 15,459.08. The Standard & Poor's 500 Index    was up 
13.87 points, or 0.80 percent, at 1,755.76. The Nasdaq Composite 
Index    was up 40.08 points, or 1.00 percent, at 4,037.04. 
    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 0.15 percent at 385.09. 
    Europe's top shares    provisionally closed down 0.17 
percent at 1,270.74 after falling as much as 0.68 percent.  
    U.S. factory orders released shortly after the Wall Street 
open bolstered the fragile mood. Nevertheless, there remained 
plenty to keep 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    also pared losses but were 
still down sharply for a second day, 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. 
    Given a pause in the selloff in emerging markets, 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 0.15 percent at 81.13, 
retracing part of the 0.37 percent drop on Monday. The greenback 
rose 0.65 percent versus the yen at 101.64 yen   . 
    Reduced safe-haven bids bogged down U.S. Treasuries and 
German Bunds. Benchmark 10-year U.S. government debt    
fell 11/32 in price to yield 2.6221 percent after hitting a 
three-month low late Monday. German Bund futures    fell 
12 basis points to 143.90.  US/   GVD/EUR  
    Gold    gave back some of Monday's safe-haven gains and 
last traded down 0.4 percent at $1,251.51 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    last traded 23 
cents lower at $105.81 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 February NYMEX contract    rose 78 
cents to $97.21 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   , the 
market's fear seismograph, to jump to its highest since June. 
    The Nikkei's 4 percent dive meant it has now shed 14 percent 
of last year's 50 percent boom. By comparison, the U.S. 
benchmark S&P 500    is down 5.8 percent and the 
FTSEurofirst 300    has dropped 3.3 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.        
 
 (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