JGB futures rose as global recession fears persist

* Japan's October current account surplus drops 56.6 pct

* Global recession fears persist after weak U.S. jobs data

* Volatility in Dec futures high ahead of expiry

By Rika Otsuka

TOKYO, Dec 8 (Reuters) - Japanese government bond futures rose on Monday, boosted by global recession fears after data showing a plunge in the nation's current account surplus and the biggest drop in U.S. job numbers in 34 years.

The lead December futures contract dropped in early trade, hurt by a rise in stocks, a fall in U.S. Treasuries late last week and technical selling ahead of a looming benchmark switch in JGB futures later in the week.

But the lead contract soon rebounded sharply as concerns about the deteriorating global economy prompted traders to cover short positions.

The government data showed on Monday that Japan's current account surplus shrunk by more-than-expected 56.5 percent in October.

That news came when investors were already worried about the global economy as Friday's U.S. data showed the world's biggest economy lost more than half a million jobs in November, the most in 34 years.

"Futures may remain very volatile until Thursday, the last trading day of the current lead contract," said Koji Ochiai, senior market economist at Mizuho Investors Securities.

December 10-year JGB futures jumped 0.80 point to 139.93 after falling as low as 138.50.

The benchmark 10-year JGB yield fell 2 basis points to 1.345 percent, hovering near a 7-½ month low of 1.340 percent hit last week.

The five-year yield was down 2.5 basis points to 0.845 percent, while the two-year yield edged down 1 basis point to 0.555 percent.

The Nikkei share average was up 0.8 percent, hovering around the psychologically important 8,000 level in early morning trade.

U.S. Treasuries fell on Friday as a view that Treasuries were too pricy after a rally that took yields to five-decade lows outweighed a big drop in employment.