GLOBAL MARKETS-Weak US jobs data hits stocks, lifts bonds

* MSCI world equity index down 1.0 pct at 317.88

* Surprisingly weak U.S. jobs data adds to growth fears

* Stocks, European FX under pressure; yen, govt bonds gain

By Natsuko Waki

LONDON, Sept 5 (Reuters) - World stocks extended losses to fresh two-year lows while save-haven government bonds rallied on Friday after a surprisingly weak U.S. jobs report deepened worries about the health of the global economy.

The U.S. unemployment rate shot up to 6.1 percent in August, its highest in more than 4-1/2 years, while the economy lost a higher-than-expected 84,000 jobs last month.

Interest rate futures moved to show a small chance the Federal Reserve might cut rates later this year. U.S. stock futures remained in the red SPc1, indicating a weaker opening on Wall Street, which posted its steepest decline in more than two months on Thursday.

"This is more convincing evidence that the economy is still in trouble and investors are seeking safer places to park their money," said Gary Thayer, senior economist at Wachovia Securities in St Louis.

"We're also seeing weakness around the globe so there's less reason for the Fed to focus on inflation and more reason to focus on getting the economy back on its feet."