* Yen touches 2-week high vs euro on risk aversion
* Dollar also touches 2-week high vs euro
* Nikkei drops 2.3 pct, investor appetite for risk wanes
By Shinichi Saoshiro
TOKYO, Nov 12 (Reuters) - The yen rose to a two-week high against the euro on Wednesday as investor appetite for risky assets waned due to a slide in the stock market.
The dollar also touched a two-week high against the euro on global recession concerns.
Worries over a global recession kept up pressure on carry trades, in which low-yielding currencies like the yen are used to buy assets in higher-yielding ones.
The Nikkei stock average fell 2.3 percent, hurt by concern about the health of the global economy, which was worsened by a string of dismal U.S. company news.
"The yen is a key market driver in an environment of risk aversion. The yen's gains against the dollar come from its appreciation against other currencies," said a trader at a European bank.
The dollar fell 0.1 percent from late New York trade on Tuesday to 99.57 yen
The euro edged up 0.2 percent to $1.2548 after touching a two-week low of $1.2477.
Against the yen, the euro declined 0.1 percent to 122.39 yen on trading platform EBS after hitting 121.23 yen, the lowest since late October.
The euro has been pressured by growing evidence from the euro zone that the economy there is already in recession.
A better-than-expected reading in a closely watched German analyst and investor sentiment survey released on Tuesday failed to prop up the euro.
Market players said the dollar and yen were unlikely to gain too sharply before a G20 summit in Washington this weekend.
"Many investors would like to buy the yen but are wary of pushing through key levels ahead of the G20 summit," the trader at the European bank said.
At the Washington summit this weekend, world leaders will meet to discuss precisely what steps they need to work out in the coming months, and how much say emerging economies will have over global finance.
Finance officials from the G20 group of developed economies and the largest emerging economies agreed on Sunday on the need to take measures to stimulate growth and fight off the threat of a global recession.
The dollar index, which measures the greenback's performance against six major currencies, was little changed at to 87.005.
(Editing by Sophie Hardach)