GLOBAL MARKETS-Cautious markets eye U.S. jobs report, Greece

* European shares up 0.3 pct to 6-month high

* Hopes of euro zone funding boost for Greece

* U.S. nonfarm payrolls to give clues to U.S. economy

* Chinese data raises hopes of policy easing

* Dollar/yen pressured; market on intervention watch

By John Stonestreet

LONDON, Feb 3 (Reuters) - Caution ahead of U.S. jobs figures kept a lid on gains for stock markets on Friday, although European shares inched up to six-month highs after data hinted the euro zone could yet avoid recession.

Uncertainty about progress in debt swap talks in Athens coloured the market backdrop, amid signs euro zone governments putting the finishing touches to more emergency funding for Greece may have to beef up their contributions.

The U.S. nonfarm payrolls report will be a more immediate catalyst, as strong data would fuel hopes of recovery for the world's top economy while poor numbers could add to pressure on the Federal Reserve for more stimulus, supporting appetite for riskier assets and putting a dampener on the dollar.

U.S. shares were seen opening 0.2 percent higher.

"A weak read will probably be interpreted as an indication that QE3 (a third round of quantitative easing) is needed to help the recovery," Cameron Peacock, market analyst at IG Markets, said.

Payrolls are forecast to rise by 150,000 after a 200,000 increase in December, with the unemployment rate seen static at 8.5 percent.

Tensions ahead of the data kept the dollar teetering near three-month lows versus the yen on Friday, trading at 76.19 yen and keeping alive the threat of official intervention from Tokyo to weaken the Japanese currency.

"I think the will of the Japanese will be tested in coming days, but we're up against a hard wall with all the determination and the artillery the Japanese have," said John Hardy, currency strategist at Saxo Bank.

SIGNS OF LIFE

Global stock markets were flat on the day but have gained more than 7 percent already in 2012, chiefly due to a flood of cash available to investors at the start of the new year.

That has been supported by indications of economic improvement particularly from the United States but the picture is still uncertain enough for the U.S. Federal Reserve to be considering another round of quantitative easing to bolster the economy. Nerves over policymakers' efforts to halt the euro zone's debt crisis in its tracks continue to worry investors.

There were signs of life in the moribund euro zone from a business survey (PMI) showing the private sector economy snapped a four-month decline in January and expanded, albeit very weakly and roughly in line with earlier flash estimates.

The FTSEurofirst 300 index of top European shares turned positive after those figures, rising to a six-month high of 1,065.34 before easing back to 1,062.99 for a gain of 0.3 percent.

Despite the euro zone's continuing crisis, the index is up more than 24 percent from the 2011 low it hit in September.

Events in Greece, which is striving to seal a broader restructuring deal with its creditors by early next week, continued to drive sentiment.

That kept investors on edge and safe-haven German government bonds rose, with the Bund future trading up 41 ticks on the day at 139.49.

U.S. debt held steady ahead of payrolls, with the 10-year Treasury yield unchanged at around 1.83 percent.

"The focus is squarely on the U.S. employment report which is crucial for near-term sentiment not just for the U.S. but in other markets as well," Nick Stamenkovic, bond strategist, RIA Capital Markets, said

"On top of that, investors (are) still awaiting news from the Greek (private bondholder debt) negotiations which seem to be dragging on."

Euro zone governments working on the second Greek financing package may have to stump up 15 billion euros more than expected, EU sources said on Friday, to help recapitalise the Greek banking sector once the private-sector deal is struck.

Shares in Glencore rose 2.6 percent and Xstrata were up 1.8 percent, extending gains posted on Thursday on news the commodities trader is in talks to buy the mining group in all-share tie-up.

The deal would create a combined group worth more than 50 billion pounds ($79 billion), shaking up the industry with its biggest deal to date.