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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

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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)