* Yen and Swiss well bid as China, Ukraine worries fester

* Kiwi rallies after RBNZ rate hike, upbeat data boosts Aussie

* Reduced easing expectations keep euro on steady footing

* China industrial production and retail sales data eyed

By Ian Chua and Shinichi Saoshiro

SYDNEY/TOKYO, March 13 (Reuters) - Safe-haven currencies the yen and Swiss franc were in favour on Thursday, consolidating their overnight gains as worries about the health of the Chinese economy and the ongoing crisis in Ukraine took a toll on risk appetite.

The New Zealand and Australian dollars surged, with the kiwi boosted after the Reserve Bank of New Zealand hiked rates and signalled more tightening ahead while stronger-than-expected employment numbers hurled the Aussie higher.

The U.S. dollar last stood at 0.8741 Swiss francs after falling as far as 0.8731 francs, a low not seen since October 2011. Against the yen, the greenback traded at 102.74 , having earlier hit a one-week low of 102.55.

The dollar also lost ground against the euro, which has hovered near a 2-1/2-year peak reached last Friday. The common currency was last at $1.3904, within reach of that $1.3915 peak.

"The euro continues to ride on the momentum generated by ECB's Draghi. Recent economic indicators from the euro zone have been upbeat as a whole, decreasing expectations for further easing," said Ayako Sera, senior market economist at Sumitomo Mitsui Trust.

The European Central Bank left interest rates unchanged last week and President Mario Draghi told a news conference that economic conditions in the region did not require a shift in monetary policy.

"Geopolitical woes and worries over China are definitely a drag on the euro, but so far they have not been able to offset benign economic fundamentals and reduced easing expectations," Sera said.

CHINESE DATA

Data showing a surprisingly big tumble in China's exports last month has spooked investors to the benefit of safe havens like the yen and Swiss franc. Investors are now bracing for Chinese industrial production and retail sales figures for January and February, which are due around 0530 GMT.

Any disappointment in those numbers would heighten fears about a slowdown in the world's second-biggest economy and keep investors wary of building their exposure to risk.

"We expect modest downside surprises, which are likely to keep sentiment toward China somewhat negative," analysts at Barclays Capital wrote in a note to clients.

Lessening the appeal of the dollar was a drop in U.S. Treasury yields as a result of safety flows. The benchmark yield slid to a one-week low of 2.71 percent, pulling away from Friday's peak of 2.82 percent.