*Nikkei drops 7 pct, Wall Street down for second day. NEW YORK, May 23- Stock markets worldwide fell sharply on Thursday as surprisingly weak data from China and Europe raised worries about slow growth a day after U.S. Federal Reserve chief Ben Bernanke broached the possibility of reducing stimulus that has buoyed investor confidence.
*Nikkei drops 7.3 pct, Wall Street opens lower. LONDON, May 22- World stocks fell and measures of investor risk aversion surged on Thursday on signs the U.S. central bank may soon start scaling back the support measures that have been driving global assets higher.
This streak prompted investors to put a net $9.1 billion into Japan equity funds and exchange-traded funds in April. Yet investors might already hold more of Japan in their portfolio than they think.
LONDON, May 23- The yen vaulted against the dollar and the euro on Thursday as a slide in equities prompted investors to take profits on the safe-haven Japanese currency's recent sharp falls.
*Japan government puts brave face on Nikkei plunge. TOKYO, May 23- The biggest plunge in Japanese stock prices since a 2011 earthquake and tsunami was a temporary pullback that will not derail the government's "Abenomics" policy of loose money and fiscal stimulus, officials said on Thursday.
LONDON, May 23- The yen vaulted to two-week highs against the dollar and the euro on Thursday as a slide in equities encouraged profit-taking on the safe-haven currency's recent sharp falls.
TOKYO, May 23- Japan's Nikkei index stock futures briefly dropped below 14,000 in after-hours trade, indicating possibly a further decline in the cash market on Friday after a 7.3- percent dive on Thursday. The index futures was last down 2.8 percent at 14,180. That compared with the benchmark Nikkei's close of 14,483.98 on Thursday.
*Gold reverses losses but still near two-year low of $1,321.35 Fed needs to see more from economy before scaling back bond-buying- Bernanke. SINGAPORE, May 23- Gold climbed off session lows on Thursday after weak Chinese factory activity jolted stock markets in Asia, sending investors back to the precious metal despite expectations the U.S.
TOKYO, May 23- Japan's Nikkei stock average tumbled 3.7 percent on Thursday, in a dramatic turnaround from a 5-1/ 2- year high hit in morning trade and was on track for its biggest daily drop in two years, as weak Chinese factory activity data rattled investors.
TOKYO, May 23- The Nikkei average trimmed gains after hitting a 5-1/ 2- year high on Thursday after factory activity in China, one of Japan's major export markets, shrank for the first time in seven months in May. 15,662.95 after falling as much as 0.6 percent at one point on the back of the China HSBC flash PMI data. "
*MSCI Asia Pacific ex- Japan falls but Nikkei climbs. SINGAPORE, May 23- Japanese government bond prices dived and 10- year JGB futures tumbled a full point, prompting the Tokyo Stock Exchange to temporarily suspend trade as the dollar hit a near three-year high versus a basket of currencies on Thursday.
*Fast Retailing jumps as retail investors in hot pursuit. TOKYO, May 23- Japan's Nikkei average soared 1.9 percent to a 5-1/ 2- year high on Thursday, aided by exporters as the yen weakened against the dollar after the U.S. The Nikkei Honda Motor Co, Canon Inc, TDK N225> was up 303.11 points to 15,930.37 after trading as high as 15,942.60, its best mark since December 2007.
HONG KONG, May 23- Hong Kong shares could start weaker on Thursday, tracking Wall Street losses and ahead of the HSBC China flash purchasing managers' index for May that could offer fresh clues on the world's second-largest economy. Elsewhere in Asia, Japan's Nikkei was up 1.6 percent, while South Korea's KOSPI was down 0.7 percent at 0050 GMT.
TOKYO, May 23- Japan's Nikkei average scaled fresh 5-1/ 2- year highs on Thursday, aided by currency-sensitive exporters as the yen weakened against the dollar after U.S. Federal Reserve chief suggested the central bank could scale back stimulus in coming months.
NEW YORK, May 22- Stocks, bonds and currencies took a wild ride on Wednesday, as remarks by Federal Reserve Chairman Ben Bernanke failed to provide the clear picture investors had hoped for of the likely continuation of the U.S. central bank's bond-buying program, with sentiment ultimately driven by expectations of tapering.