GLOBAL MARKETS-Shares sag after sub-par PMIs, waning Greece fears buoy euro
* European shares slide after soft PMIs
* Euro rebounds after taking hit on PMIs
* China HSBC PMI dips to 49.2 in April from 49.6
* German, UK yields fall after Wednesday's sell-off
* Wall Street set for subdued start
By Marc Jones
LONDON, April 23 (Reuters) - World shares weathered soft
readings on Chinese and Japanese manufacturing which served to
recharge expectations of more policy stimulus there, though
lacklustre euro zone data soured the mood on Thursday.
European stock markets initially opened higher, spurred by
multi-year highs in Asia, but sluggish euro zone and German
purchasing manager data and conflicting numbers from France
sent indexes into the red.
Stock index futures suggested U.S. markets would
maintain the negative trend.
Overall, euro zone private sector business growth was weaker
than forecast, despite help for exporters from a big fall in the
euro and the launch in March of a sovereign bond buying
programme from the European Central Bank.
"Even (Taiwan OTC: 6436.TWO - news) though there is a clear improvement on the economic
front in Europe ... the jury is still out," BNP Paribas Fortis
Global Markets' head of research, Philippe Gijsels, said.
The euro headed lower against the dollar, though it picked
up later while European bond markets steadied, with yields on
both UK gilts and German Bunds falling
after the bonds led a lively sell-off on Wednesday.
The FTSEurofirst 300 equity index fell 0.9 percent.
Asian stocks distracted investors from worries about Greece,
hitting a 15-year peak in Japan, their highest for seven years
in China and Taiwan and for nearly four years in South Korea.
MSCI (NYSE: MSCI - news) 's broadest index of Asia-Pacific shares outside Japan
stood slightly higher, having earlier reached
levels last seen in early 2008.
The HSBC China manufacturing PMI hit a one-year trough
, but that merely added to speculation that
central banks in both countries would keep up stimulus.
Japan's Nikkei ended up 0.3 percent, South Korea
gained 1.4 percent and Shanghai stocks closed up
0.4 percent, with investors still emboldened by a commentary in
state media saying the bull market "has just begun".
"Investors only care about the attitude of the government,
which has so far appeared tolerant (of the rise in markets),"
said Du Changchun, analyst at Northeast Securities (Shenzhen: 000686.SZ - news) in Shanghai.
DOLLAR RESILIENT
With U.S PMIs and another batch of company earnings
due later, early futures prices pointed to
a subdued start for Wall Street after the previous
session's 0.4-0.5 percent gains for the main U.S. markets.
The dollar was on the rise again and sterling, which had
jumped with UK gilt yields on Wednesday after minutes of the
Bank of England's last policy meeting, was last down 0.3 percent
at $1.4995.
The New Zealand dollar shed 1.5 percent to $0.7663
after a central banker said rate cuts could be considered if
domestic demand and inflationary pressures were to weaken.
The euro fell as low as $1.0665 before rebounding to
$1.0737, up 0.1 percent on the day. Traders remain sensitive to
worries about Greece, but clear signals on that front are
unlikely before Monday's Eurogroup meeting.
"The U.S. data this afternoon and durable goods tomorrow may
provide some more volatility ahead of the Fed meeting next
week," said Piotr Pazio, a strategist with Rabobank in London.
Against the yen, the dollar was firm around 120.06
and on track for its fourth straight session of gains.
Spot gold nudged up to $1,189 an ounce after its
sharpest single-session loss since March 6 on Wednesday.
Oil prices were a fraction softer with Brent quoted
at $62.71 a barrel, while U.S. crude dipped 20 cents to
$55.96.
(Additional reporting by Atul Prakash, Patrick Graham and Nigel
Stephenson; editing by John Stonestreet/Ruth Pitchford)