* Yen gains on rising risk aversion

* Weak U.S. jobs data sours outlook on U.S., global growth

* July 8-10 G8 meeting eyed for FX diversification debate

* Dollar gives up earlier gains vs euro as stocks edge up

* U.S. services sector shrinks at slower pace (Updates prices, adds detail)

By Steven C. Johnson

NEW YORK, July 6 (Reuters) - The yen gained broadly on Monday as investors nervous about the global economic outlook shunned risk and took shelter in currencies perceived to be safest in times of subpar growth.

The dollar hit a five-week low against the yen as fallout from last week's grim U.S. jobs data unnerved investors who had bet on an improving world economy. The greenback briefly hit a two-week high against the euro but gave up gains as the Dow and S&P 500 staged a late return to positive territory.

When risk aversion rises, investors cut holdings of stocks and higher-yielding currencies and often buy back yen and U.S. dollars that were used to finance the trades.