By Walter Brandimarte

NEW YORK, Feb 7 (Reuters) - Venezuela's bond prices led losses in emerging debt markets on Thursday after court orders from several countries including the United States and Britain froze about $12 billion in assets of state oil company PDVSA, sparking fears of retaliation by President Hugo Chavez.

The PDVSA news, which broke in the afternoon, increased investors' caution towards emerging debt markets, which had seen prices falling since the beginning of the session on lingering U.S. recession fears.

Overall emerging debt returns ended the day 0.37 percent lower, according to the JP Morgan EMBI+ index 11EMJ. Spreads tightened 9 basis points to 271 basis points, however, as emerging bonds did not sell off as much as U.S. Treasuries.

Brazil's global bond due 2040 <BRAGLB40=RR>, the most liquid of its asset class, slipped 0.750 point in price to be bid 133.125, its largest one-day loss since September.

Brazil's sovereign bonds have been among the most resilient in emerging debt markets, while pressure has been mounting in more unbalanced economies.

"Emerging market countries in Eastern and Central Europe and South Africa, they have been feeling increased pressures from the global credit crunch and, as a result, they have been underperforming significantly and that has been helping to drag the rest of emerging markets weaker," said Nick Chamie, head of emerging markets research at RBC Capital in Toronto.

"Also, as time goes by, investors are becoming more and more aware of the implications of the U.S. growth slowdown and possible recession," he added.

But current price falls do not reflect a broad selling of sovereign bonds yet, said Luiz Felipe Brandao, emerging markets director of Arkhe brokerage in Sao Paulo.