* Global stocks rebound as risk appetite returns
* Yen slips as Japan downgrades economic outlook
* Oil rebounds from recent losses, gold rises
* U.S. President's speech on budget plan on tap (Updates market action)
By Richard Leong
NEW YORK, April 13 (Reuters) - Global stock markets recovered on Wednesday from a sharp sell-off, and the yen slipped after Japan scaled back its economic outlook due to last month's earthquake and tsunami.
Commodity prices reversed a steep two-day decline, led by oil after data showed the largest weekly fall in gasoline inventories since 1998.
On Wall Street, however, stocks struggled to maintain
gains, despite strong profit growth from JPMorgan Chase & Co
A U.S. government report showed U.S. consumers spent at a decent clip in March, allaying some concerns that lofty energy costs will cause a global slowdown. [ID:nN13249074]
"Economic fundamentals are supportive for stocks and commodities, which are all predicated on global growth," said Mark Luschini, chief market strategist at Janney Montgomery Scott based in Philadelphia.
Prices of Brent crude oil rose above $122 a barrel, rebounding from a two-day sell-off caused by worries that high prices would crimp demand, while gold firmed on a weaker U.S. dollar.
World stocks as measured by MSCI <.MIWD00000PUS> were up 0.4 percent for about 4.5 percent year-to-date gain. Much of the gain came from emerging markets <.MSCIEF>, which gained more than 0.6 percent.
The Dow Jones industrial average <.DJI> was down 5.04 points, or 0.04 percent, at 12,258.54. The Standard & Poor's 500 Index <.SPX> was down 1.31 points, or 0.10 percent, at 1,312.85. The Nasdaq Composite Index <.IXIC> was up 9.95 points, or 0.36 percent, at 2,754.74.
"People are getting the sense that no matter what these companies say, the easy money has already been made so it will be tough to see further upward movement," said Rick Fier, vice president at Conifer Securities in New York, which has about $7 billion in assets under administration.
U.S. President Barack Obama was due to speak at about 1:30 p.m. (1730 GMT) to outline his plan for tackling the long-term U.S. deficit and debt in a speech in which he is expected to push for higher taxes for the rich and changes to government pension and healthcare plans. [ID:nN12216395]
The dollar has weakened against most major currencies this year on concerns over the huge $1.5 trillion federal budget.
The U.S. dollar, however, has firmed versus the yen since late March as Japan faces the daunting task of rebuilding after the ravaging quake and tsunamis that hit the country last month.
The benchmark Nikkei index <.N225> rose 0.9 percent on the day in thin volume. Analysts suggested the full impact of the country's disasters, as outlined in the government's new assessment, was still not clear.
A Bank of America-Merrill Lynch fund manager poll Tuesday showed investors rapidly cutting their exposure to Japanese equities, although some big firms have been buying.
In Europe, the FTSEurofirst 300 <.FTEU3> closed up 0.7 percent, a day after posting its biggest one-day fall in a month.
YEN FALLS, EURO RISES
The yen ended a four-session winning streak against the euro and dollar following the Japanese government's lowered economic outlook, its first downgrade in six months. [ID:nL3E7FD0DS]
The euro touched a 15-month high against the dollar at $1.4521 on EBS trading platform.
The euro continued to be buoyed by the prospect of further interest rate rises by the European Central Bank while monetary policy stays loose in the U.S. and Japan.
The dollar was up about 0.6 percent at 84.02 yen after sliding more than 1.2 percent Tuesday for its biggest one-day percentage drop in four months. [FRX/]
"If there is no pullback in oil and other commodity prices then I think going forward the yen will be very vulnerable," said Niels Christensen, currency strategist at Nordea in Copenhagen.
In bond trading, U.S. government debt prices were flat, erasing earlier losses tied to data on domestic retail sales were not as weak as some traders had bet on.
The U.S. Treasury will sell $21 billion in 10-year notes later Wednesday. For more, see [US/] (Additional reporting by Angela Moon in New York; Jeremy Gaunt, Brian Gorman, Jessica Mortimer, Barbara Lewis, Jan Harvey in London; Editing by Leslie Adler)