GLOBAL MARKETS-Credit concerns hit stocks, high-yielding FX

* MSCI world equity index down 0.4 percent at 339.99

* Emerging market stocks, high-yielding currencies fall

* Japan GDP data, JPMorgan reinforce credit/economy concerns

By Natsuko Waki

LONDON, Aug 13 (Reuters) - Investors cut back on risky assets on Wednesday, dumping emerging market stocks and high-yielding currencies on global credit and economic concerns while the dollar stepped back from this week's six-month peak. The low-yielding yen rose across the board while oil prices climbed above $113 a barrel after hitting a three-month low on Tuesday.

Fresh data added to evidence that U.S. economic problems are spilling over to the rest of the world. Japan's economy contracted in the second quarter at the sharpest rate in seven years, reinforcing the view that the world's No. 2 economy has slipped into recession.

News that JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) has racked up $1.5 billion of losses so far this quarter on mortgage-linked assets and an outlook warning from Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research, Stock Buzz) reminded investors that the fallout from the year-old credit crisis is far from over.

"Credit fears are rising again after the news from JPMorgan ... With the fall on Wall Street overnight, that will weigh today," said Benoit De Broissia, analyst at Richelieu Finance in Paris.

Emerging stocks .MSCIEF fell to a one-year low of 976.25, underperforming their developed market counterparts, which fell 0.4 percent on the day, according to the MSCI main world equity index .MIWD00000PUS.

The FTSEurofirst 300 index fell 0.7 percent.

HIGH-YIELDING VICTIMS

The New Zealand dollar, which boasts the highest interest rate in the industrialised world, fell 2 percent to a two-year low near 74 yen while the Aussie also fell 2 percent to a four-month low near 93 yen .

The two currencies have been under pressure as expectations intensify that falling commodity prices will encourage central banks there to cut interest rates.

"With real policy rates in the region set to fall, both economies are likely to see a more protracted spell of high inflation, a risk that will be exacerbated if the trade term gains over the past years are to reverse course going forward," Simon Wong, economist at Standard Chartered, said in a note.

"Another challenge will come from potential adjustments in external balance in reaction to lower real returns on the region's financial assets that could undermine the supply of foreign funding to the domestic financial sectors."

The dollar was down 0.3 percent against a basket of major currencies .DXY, after hitting a six-month high on Tuesday.

Emerging sovereign spreads 11EMJ were steady.

The September Bund future FGBLU8 fell 5 ticks while two-year euro zone government bonds rose on concerns over the economy.

U.S. light crude CLc1 rose 0.8 percent to $113.92 a barrel, having fallen more than $30 from its record peak in July. Gold rose to $825.10 an ounce after hitting an eight-month low on Tuesday.

Source: www.reuters.com