CORRECTED-GLOBAL MARKETS-Growth worries on coronavirus send stocks lower at end of best week since June

(Corrects number of deaths to 637 from 6,737 in paragraph 3)

* Number of coronavirus cases rises

* Fear of virus curbing global growth offsets U.S. labor data

* World stock markets still set for best week since June

* Oil weakens, government debt yields fall

NEW YORK, Feb 7 (Reuters) - Global equity markets and government debt yields slumped on Friday as growing concerns about the impact of the coronavirus on global growth overshadowed a strong U.S. jobs report that indicated an economy on pace to grow moderately.

Stocks on Wall Street slid from record highs and the safe-haven Japanese yen rose as investors weighed how much the virus is likely to disrupt supply chains, as China accounts for one-third of global growth.

The better-than-expected U.S. labor report failed to move the market, with the fast-moving virus, which has inflicted 31,211 people and left 637 dead, dictating investor sentiment.

Nonfarm payrolls increased by 225,000 jobs in January, with employment at construction sites increasing by the most in a year amid milder-than-normal temperatures, the Labor Department said.

“Investors should be watching the effect of the coronavirus on the global supply chain and thus, on the global economy and corporate profits,” said John Vail, chief global strategist at Nikko Asset Management.

While the amount and duration of the effect is still unknown, there is a moderate chance that the Phase 1 U.S.-China trade deal will be severely hampered and bilateral relations will worsen again, Vail said.

Stocks rallied for four straight days on speculation the virus’ impact would be contained for U.S. markets, said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

“But there’s a lot of news about it having a more severe impact on China than what people envisioned,” he said.

MSCI’s gauge of stocks across the globe shed 0.41%, just shy of breaching a record high during the week’s rally.

Emerging market stocks lost 1.05% and the pan-European FTSEurofirst 300 index lost 0.25% but was still poised to post its best week since late 2016.

On Wall Street, the Dow Jones Industrial Average fell 194.64 points, or 0.66%, to 29,185.13. The S&P 500 lost 8.8 points, or 0.26%, to 3,336.98 and the Nasdaq Composite dropped 9.52 points, or 0.1%, to 9,562.64.

U.S. Treasury yields declined.

Benchmark 10-year notes last rose 17/32 in price to yield 1.5852%.

Euro zone bond yields fell after data showed German industrial output in December suffered its biggest fall in more than a decade, fanning concerns about the economic outlook for the bloc’s biggest economy.

German industrial production tumbled 3.5% on the month, undershooting expectations of a 0.2% fall, in the biggest drop since January 2009.

French industrial production fell more sharply than expected in December as factories contended with nationwide transport strikes and a broader European slowdown.

Germany’s benchmark 10-year Bund yield fell to as low as -0.368%.

The dollar slid and the yen rose after four days of selling, spurred by investor hopes China would be able to contain the virus and limit its economic fallout.

The dollar index rose 0.16%, with the euro down 0.26% to $1.0951.

The Japanese yen strengthened 0.19% versus the greenback at 109.79 per dollar.

In Asian trade, the yen halted a slide that had it set for its worst week in 18 months.

The Australian dollar was on track for its first weekly gain this year, while the Singapore dollar and Thai baht have been trampled in a rush out of emerging markets.

Oil prices slipped as Russia said it would need more time before committing to output cuts along with the Organization of the Petroleum Exporting Countries and other producers amid falling demand for crude as China battles the coronavirus.

Brent crude futures fell 16 cents to $54.77 a barrel, while U.S. West Texas Intermediate (WTI) crude futures slid 12 cents to $50.83 a barrel. (Reporting by Herbert Lash; additional reporting by Sruthi Shankar in Bengaluru; Editing by Dan Grebler)