* Yen rise vs dlr on worry over global recession
* Bleak Japan industrial data adds to concerns
* Talk of Japan insurers repatriating funds give boost to yen
* Mumbai attacks unleash security fear, hurt dollar
By Satomi Noguchi
TOKYO, Nov 28 (Reuters) - The yen rose against the dollar in thin trade on Friday as fears of a long and deep global recession continued to highlight the relative safety of the low-yielding Japanese currency.
Japanese industrial production slid more than expected in October and manufacturers warned of record cuts ahead, in bleak news that points to more trouble for an economy already in recession.
Traders also cited talk of Japanese life insurers repatriating funds, giving a boost to the yen.
The dollar, normally a beneficiary of greater risk aversion, slipped versus a basket of major currencies after militants killed at least 119 people in Mumbai in coordinated attacks.
The assault stirred memories of the Sept. 11, 2001, attacks on the World Trade Center in New York, feeding geopolitical concerns and prompting some players to reduce their exposure to the dollar, traders said.
But activity remained slow before U.S. markets reopen later in the day after the Thanksgiving holiday, and price movements in Asia were confined to a tight range due to month-end flows, traders said.
"The market is wavering between decisive trends with too many factors to digest," said Minoru Shioiri, chief manager of foreign exchange trading at Mitsubishi UFJ Securities.
"In such market conditions and thin liquidity, only flows from corporations and such will provide direction," Shioiri said.
The dollar was trading at 95.27 yen, down from late European trade on Thursday when it was around 95.41 yen.
Demand from Japanese companies who needed to pay for their imports at the end of the month briefly lifted the dollar to day's high of 95.61 yen, but sell orders from Japanese exporters repatriating their overseas earnings pushed the greenback down again, traders said.
The euro edged down to 122.80 yen, compared to 122.92 yen in late London trade.
The euro was steady at $1.2890 while the dollar slipped against a basket of currencies to 85.632, from around 85.671 in late European trade. (Editing by Edwina Gibbs)