(Recasts, updates prices)
* Oil prices surge on fears of global supply disruption
* China industrial output growth weakens, hits risk appetite
* Stocks slip, safe-haven gold and Japanese yen rise
By Swati Pandey
SYDNEY, Sept 16 (Reuters) - Oil surged to four-month highs on Monday after weekend attacks on crude facilities at key producer Saudi Arabia sparked supply fears, while shares in Asia extended losses as bleak economic data from China sapped investor risk appetite.
Crude futures LCOc1 Clc1 on both sides of the Atlantic hit their highest since May, but came off their peaks after U.S. President Donald Trump said he had authorized the use of the U.S. emergency stockpile to ensure stable supplies. O/R
Trump also said the United States was "locked and loaded" for a potential response to the strikes on the Saudi facilities, which shut 5% of world production, after a senior official in his administration said Iran was to blame.
Worries about tensions in the Middle East and worsening relations between Iran and the United States powered safe-haven assets, with gold XAU= rising 1% in early Asian trade to $1,503.09 per ounce. GOL/
"If risk appetite collapses due to fears of worsening Middle East tensions in the wake of any retaliation to the ... attacks, some emerging markets could face a double whammy of pressures," said Mitul Kotecha, Singapore-based senior emerging markets strategist at TD Securities.
He noted that the Indian rupee INR=D3 , Indonesian rupiah IDR=D3 and Philippine peso PHP=D3 were the most risk sensitive currencies in Asia.
Indonesian stocks .JKSE opened 2% lower on Monday, marking biggest intraday drop since Aug.6.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.44% to 513.3 after data showed China's industrial production growth skidding to its weakest pace in 17-1/2 years in August. a dour picture of the world's second-biggest economy, China's statistics bureau said the country faces increasing downward pressure from external uncertainties.
Liquidity was relatively thin with Japanese markets shut for a public holiday.
Among major currencies, the Saudi news pushed the yen JPY= up 0.3% to 107.74 per dollar while the Canadian dollar CAD=D3 rose 0.5% in anticipation of higher oil prices.
The euro EUR=D3 was little moved near a three-week top while the pound GBP=D3 stepped back from Friday's two-month highs. That left the greenback down 0.1% at 98.126 against a basket of six major currencies .DXY .
"One immediate question this (attack) poses for bond markets is whether a further rise in the inflation expectations component of bond yields - which have proved historically sensitive to oil prices - will give this month's sharp bond market sell-off fresh impetus," said NAB analyst Ray Attrill.
"Or will safe-haven considerations dominate to drive yields lower?"
In early Asian trading, futures for U.S. 10-year Treasury notes TYv1 rose 0.3%, indicating yields may slip when cash trading begins. bonds were sold off last week, sending yields higher, led by a broader risk rally on hopes the United States and China would soon end their long trade war. Better-than-expected U.S. retail sales data also boosted sentiment.
Investors next await the outcome of the U.S. Federal Reserve's policy meeting on Wednesday at which it is widely expected to ease interest rates and signal its future policy path. FEDWATCH
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