FOREX-Yen gains; shrinking output raises investor caution

* Yen extends broad rise as weak PMIs knock share markets

* High-yielders sink on expectations of global rate cuts

* BoE, ECB, RBA, RBNZ all seen slashing borrowing costs

* U.S. jobs data later this week also in focus

(writes through with quotes, comment, updates prices, changes byline)

By Veronica Brown

LONDON, Dec 1 (Reuters) - The Japanese yen strengthened broadly on Monday as slumping Chinese and European manufacturing activity kept investors on edge and dragged world share prices down.

Yen strength also weighed heavily on currencies of countries where central banks are expected to slash interest rates later this week including the euro, sterling and Australian dollar.

The Bank of Japan, meanwhile, whose key interest rates are a mere 0.3 percent, said it will hold an emergency meeting on Tuesday to discuss changes in the use of corporate debt for collateral banks put up to access central bank funds.

With economies already slowing sharply around the world sensitivity to output figures was high.

Manufacturing activity in the euro area, which has already entered recession, hit a record low in November. [ID:nLR485231]. Economic powerhouse China also saw its manufacturing industry slump in November as new orders, especially from abroad, tumbled [ID:nPEK123652]

Resulting risk aversion took global share prices, as measured by MSCI's all country index, down 1 percent on the day [.MIWD00000PUS], while yen gains against major rival currencies accelerated sharply.

"The data is just so terribly poor that it's going to be difficult for any kind of period of sustained uptrend in confidence," said Derek Halpenny, European Head of Global Currency Research at BTM UFJ in London.

"Until we're through the deterioration in the data then the likelihood is that risk aversion will remain elevated and we'll see renewed interest in lower yielding currencies," he added.

By 1150 GMT, the dollar was down 1.7 percent against the yen at 93.88 yen JPY= and the euro was down 1.9 percent versus the Japanese unit at 118.93 yen EURJPY=.