CORRECTED-GLOBAL MARKETS-Growth worries on coronavirus send stocks lower at end of best week since June

(Corrects number of deaths to 637 from 6,737 in paragraph 3)
* Number of coronavirus cases rises
* Fear of virus curbing global growth offsets U.S. labor
data
* World stock markets still set for best week since June
* Oil weakens, government debt yields fall

By Herbert Lash
NEW YORK, Feb 7 (Reuters) - Global equity markets and
government debt yields slumped on Friday as growing concerns
about the impact of the coronavirus on global growth
overshadowed a strong U.S. jobs report that indicated an economy
on pace to grow moderately.
Stocks on Wall Street slid from record highs and the
safe-haven Japanese yen rose as investors weighed how much the
virus is likely to disrupt supply chains, as China accounts for
one-third of global growth.
The better-than-expected U.S. labor report failed to move
the market, with the fast-moving virus, which has inflicted
31,211 people and left 637 dead, dictating investor sentiment.
Nonfarm payrolls increased by 225,000 jobs in January, with
employment at construction sites increasing by the most in a
year amid milder-than-normal temperatures, the Labor Department
said. "Investors should be watching the effect of the coronavirus
on the global supply chain and thus, on the global economy and
corporate profits," said John Vail, chief global strategist at
Nikko Asset Management.
While the amount and duration of the effect is still
unknown, there is a moderate chance that the Phase 1 U.S.-China
trade deal will be severely hampered and bilateral relations
will worsen again, Vail said.
Stocks rallied for four straight days on speculation the
virus' impact would be contained for U.S. markets, said Rick
Meckler, partner at Cherry Lane Investments in New Vernon, New
Jersey.
"But there's a lot of news about it having a more severe
impact on China than what people envisioned," he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.41%, just shy of breaching a record high during the week's
rally.
Emerging market stocks lost 1.05% and the pan-European
FTSEurofirst 300 index .FTEU3 lost 0.25% but was still poised
to post its best week since late 2016.
On Wall Street, the Dow Jones Industrial Average .DJI fell
194.64 points, or 0.66%, to 29,185.13. The S&P 500 .SPX lost
8.8 points, or 0.26%, to 3,336.98 and the Nasdaq Composite
.IXIC dropped 9.52 points, or 0.1%, to 9,562.64.
U.S. Treasury yields declined.
Benchmark 10-year notes US10YT=RR last rose 17/32 in price
to yield 1.5852%.
Euro zone bond yields fell after data showed German
industrial output in December suffered its biggest fall in more
than a decade, fanning concerns about the economic outlook for
the bloc's biggest economy.
German industrial production tumbled 3.5% on the month,
undershooting expectations of a 0.2% fall, in the biggest drop
since January 2009. French industrial production fell more sharply than expected
in December as factories contended with nationwide transport
strikes and a broader European slowdown.
Germany's benchmark 10-year Bund yield fell to as low as
-0.368% DE10YT=RR .
The dollar slid and the yen rose after four days of selling,
spurred by investor hopes China would be able to contain the
virus and limit its economic fallout.
The dollar index .DXY rose 0.16%, with the euro EUR=
down 0.26% to $1.0951.
The Japanese yen JPM= strengthened 0.19% versus the
greenback at 109.79 per dollar.
In Asian trade, the yen halted a slide that had it set for
its worst week in 18 months. FRX/
The Australian dollar was on track for its first weekly gain
this year, while the Singapore dollar SGD= and Thai baht
THB= have been trampled in a rush out of emerging markets.
EMRG/FRX
Oil prices slipped as Russia said it would need more time
before committing to output cuts along with the Organization of
the Petroleum Exporting Countries and other producers amid
falling demand for crude as China battles the coronavirus.
Brent crude LCOc1 futures fell 16 cents to $54.77 a
barrel, while U.S. West Texas Intermediate (WTI) crude CLc1
futures slid 12 cents to $50.83 a barrel.