GLOBAL MARKETS-Stocks recoup early losses, oil not so lucky

* Global stock markets recover after weak U.S. jobs data

* U.S. unemployment rate hits 10.2 percent, above forecast

* Crude oil prices falls on expected decline in demand

* Yen rises against dollar and euro (Recasts, adds comments, updates prices, changes byline, dateline, previous LONDON)

By Daniel Bases

NEW YORK, Nov 6 (Reuters) - Global equity markets rebounded on Friday from the initial scare brought on by a grim U.S. jobs report after investors decided the data were not so bad.

However, the U.S. dollar and oil prices didn't benefit from this shift in market sentiment.

While U.S. President Barack Obama called the data "sobering", the increase in the unemployment rate to a higher-than-expected 10.2 percent, a 26-1/2-year peak, was later discounted after the number of jobs reported lost in August and September were revised down. For more see [ID:nN06178752].

U.S. employers cut 190,000 jobs last month. Economists polled ahead of the data had expected 175,000 job cuts and an unemployment rate of 9.9 percent.

The Japanese yen rose against both the greenback JPY= and the euro EURJPY=. The U.S. dollar was unchanged against a basket of currencies made up of its major trading partners .DXY.

"The real shocker is the unemployment rate," said Joseph Trevisani, senior market analyst at FX Solutions in Saddle River, New Jersey. "The Fed will stay on hold even longer with less likelihood of giving a concrete answer as to when and how to withdraw quantitative easing."

Recently the weak global economic environment has led investors to buy U.S. dollars for safety. However Friday's data fueled the argument that the Federal Reserve -- the U.S. central bank -- will maintain near-zero benchmark interest rates in order to facilitate cheap borrowing and investment.

HELPING HANDS

Helping to overshadow the jobs report were two analyst upgrades on shares of U.S. conglomerate General Electric (GE.N), a bellwether for U.S. economic activity. This helped take some of the sting out of the stock market's initial fall on the jobs report. GE's share price surged 7 percent to $15.44. [ID:nN06538139]

"The headline (U.S.) numbers look terrible, but for traders and investors looking for trends, a closer look at the report shows that there is a trend of slowed job losses," said Randy Frederick, director of trading and derivatives at Charles Schwab & Co, Inc in Austin, Texas.

European share prices also managed to turn higher, with bank stocks leading the way. Part-nationalized Royal Bank of Scotland (RBS.L) gained 5.3 percent after it said it more than halved third-quarter losses as impairments fell. [ID:nL6671701]

At 1 p.m. (1800 GMT), the major U.S. stock indexes were all higher. The Dow Jones industrial average .DJI was up 24.64 points, or 0.25 percent, at 10,030.60. The Standard & Poor's 500 Index .SPX rose 3.04 points, or 0.29 percent, at 1,069.67. The Nasdaq Composite Index .IXIC gained 6.56 points, or 0.31 percent, at 2,111.88.

The MSCI world equity index .MIWD00000PUS rose 0.36 percent while the emerging markets index .MSCIEF gained 0.75 percent.

European stocks recovered early losses as the FTSEurofirst 300 index .FTEU3 gained 0.2 percent, up 1.6 percent for the week. Tokyo's benchmark Nikkei .N225 rose 0.74 percent to 9,789.35 on Friday after marking a one-month closing low on Thursday. The Nikkei lost 2.44 percent for the week.

Crude CLc1 fell below $78 per barrel on prospects the U.S. jobs data means energy demands will decline. U.S. light sweet crude oil fell $2.62, or 3.29 percent, to $77.00.

Spot gold broke through the $1,100-an-ounce barrier, touching a record $1,100.90 before retreating to $1,094.10, still up $3.55 or 0.33 percent on the day XAU=.

Benchmark 10-year U.S. Treasury US10YT=RR prices rose 1/32 of a point in price to yield 3.52 percent.

In euro zone government bonds, the two-year Schatz EU2YT=RR paper outperformed with yields down 4 basis points at 1.28 percent, while 10-year Bund yields EU10YT=RR were up 1.9 basis points at 3.36 percent. (Additional reporting by Angela Moon and Gene Ramos in New York; Lucia Mutikani in Washington and Simon Falush, Joanne Frearson, George Matlock, and Jessica Mortimer in London)