RPT-GLOBAL MARKETS-Asian stocks fall on US jobs data, oil
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HONG KONG, June 9 (Reuters) - Asian stocks fell sharply and government bonds climbed on Monday, after oil prices surged to a record high of $139 a barrel and data suggested the world's largest economy is creeping perilously closer to stagflation.
The U.S. unemployment rate posted its steepest one-month rise in 22 years, figures on Friday showed, increasing fears of a replay of the 1970s when a spike in inflation coincided with a period of stagnant economic growth. [ID:nN06467327]
In their biggest one-day jump every, oil prices jumped $11 on Friday, sparking the largest single-day selloff on Wall Street since February 2007 [O/R].
The combination of soaring energy prices and signs of economic instability overseas hit of Asian stock markets, which were still trying recover from double-digit inflation rates in some parts of the region.
"The factors depressing the market, namely inflation and the global economic downturn, are not going to just go away," said Lee Young-su, a market analyst at Daewoo Securities in South Korea.
By 0240 GMT, Japan's Nikkei .N225 was 2.1 percent lower, on track for its largest single-day decline in two weeks, with exporters like camera manufacturer Canon Inc (7751.T) and auto maker Honda Motor Co (7267.T) paving the way lower.
MSCI's index of other Asia-Pacific stocks .MIAPJ0000PUS was down 0.8 percent, taking year-to-date losses to 11 percent.
Shares in the tech-heavy TAIEX in Taiwan declined 2.1 percent, while Korea's KOSPI was down 1.8 percent.
Financial markets in Australia, Hong Kong and the Philippines were closed for public holidays.
OIL SHOCK
U.S. light crude CLc1 slipped $1.20 to $137.34 on Monday after it surged $10.75 on Friday on dollar weakness and tensions in the Middle East after an Israeli minister talked about a possible attack on Iran, the world's fourth-largest producer.
Oil has risen about 40 percent since January as funds hedge against the dollar and some bet that long-term oil supplies will struggle to keep up with demand in the decades ahead.
"What's driving this ultimately is compound consumption. You can't put 40 million cars a year on the road and think we're going to consume less," said Greg Smith, who manages $500 million in futures as the head of fund Global Commodities in Australia.
At the weekend, key OPEC officials maintained they saw no need to consider pumping more oil now, despite the surge. Continued...
